The French Council of State (Conseil d'État - Supreme Administrative Court) issued a decision on 27 February 2019 concerning the differing French tax treatment of dividend income of a resident company versus a non-resident company in a loss-making position, which was ruled on by the Court of Justice of the European Union (CJEU) in a judgment issued in November 2018 (previous coverage). In that judgment, the CJEU essentially held that France could not impose withholding tax on dividends paid to loss-making non-resident EU entities while not taxing dividends received by loss-making French entities because this constitutes a restriction on the free movement of capital in violation of EU law. In applying the CJEU judgment, the French Council of State has decided to annul the earlier decisions of the lower court that tax should be withheld and referred the cases back to the lower court
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.