In case you missed it, here are some of 2024’s most important tax court decisions and other developments concerning withholding tax reclaims in the EU.

December 10, 2024: Council of the European Union formally adopts the FASTER Directive, a major initiative aimed at reforming and streamlining withholding tax (WHT) relief procedures across Member States. Read our article by clicking here.

November 7, 2024: In the “XX case”, ECJ rules that the Netherlands violates the free movement of capital by subjecting foreign life insurance companies to 15% withholding tax on their gross return on investment from unit linked insurance products, while Dutch life insurance companies are effectively exempt from tax on unit linked insurance products. Read our article by clicking here.

September 6, 2024: Dutch Supreme Court upholds its position in prior rulings that foreign investment funds are not objectively comparable to Dutch Fiscal Investment Institutions due to differing profit distribution and taxation requirements, and therefore not entitled to refund of Dutch dividend withholding tax on the basis of the free movement of capital. The decision is in stark contrast with the EC’s July 2024 infringement proceeding against the Netherlands regarding the same matter. Read our article by clicking here.

July 2024: European Commission launched an infringement procedure against the Netherlands, targeting the country’s discriminatory tax practices against foreign investment funds. Read our article by clicking here.

July 29, 2024: In the “KEVA case”, European Court of Justice rules that that Swedish tax legislation violates the principle of free movement of capital of article 63 TFEU where it imposes a withholding tax on dividends paid to non-resident public pension institutions while exempting resident public pension funds. Read our article by clicking here.

April 27, 2024: In the “L-fund case”, the European Court of Justice concluded that Germany violates the freedom of movement of capital by subjecting non-resident specialized property funds to corporate income tax on income from property received in Germany, while exempting resident specialized property funds from the same tax. Read our article by clicking here.

March 13, 2024: the German Bundesfinanzhof (Federal Fiscal Court) ruled in favor of foreign investment funds, determining that they are entitled to refunds on capital gains tax withheld on German dividends from 2004 to 2017 based on the free movement of capital, considering the foreign investment funds are objectively comparable to German investment funds. Read our article by clicking here.