CJEU Ruling on Dutch Dividend Withholding Tax and Free Movement of Capital

On 7 November 2024, the European Court of Justice (CJEU) delivered a significant judgment (XX, C-782/22) concerning the application of dividend withholding tax (DWT) on foreign insurance companies. The ruling addresses the compatibility of Dutch DWT rules with the principle of free movement of capital under EU law.

The CJEU concluded that treating resident and non-resident companies differently may constitute an unjustified restriction on capital movement, particularly when dividends received are directly linked to an increase in obligations to clients. If the national court determines such a restriction exists, it could pave the way for non-Dutch residents to claim refunds of Dutch DWT.

Stay informed as we explore the implications of this ruling and its potential impact on cross-border taxation. Read the WTS Global Financial Services newsletter here.

Questions?

Please contact Roemer Schimmelpenningh or Joël van de Sluis.