EU dividend withholding tax reclaims

The increasing number of refund decisions have made it clear that there is a significant opportunity for non-EU-resident funds to successfully file EU WHT reclaims. EY can help develop and document a robust filing strategy and protect your reclaim position.

New developments and key drivers

The free movement of capital provisions in the Treaty on the Functioning of the European Union (the Treaty) extend to third (i.e., non-EU) countries:

  • This principle has been reaffirmed by the Court of Justice of the European Union (CJEU) in its April 10, 2014, decision (C-190/12) in relation to a US regulated investment company (US RIC) investing in Polish shares as well as in its November 13, 2019, decision (C-641/17) related to a Canadian pension fund with respect to German- sourced dividends.
  • It has also been enforced in decisions issued by EU national courts with respect to US RICs.
  • Refunds for dividend withholding tax are currently granted to US RICs and Canadian funds by Finland and Poland. We expect this trend to continue and to expand to France, Spain and Sweden.
  • Across the asset management industry as a whole, there are billions of euros of dividend withholding tax estimated relating to open tax periods for which reclaims are yet to be filed.

The EY experience

What EY can do for you

EY can assist you throughout the process with initial feasibility study and cost-benefit analysis, filing reclaims in relevant jurisdictions, post-filing steps up to refund and regular technical updates. Our Global experience, established track record with clients and coordinated approach can provide a thorough understanding of the potential for reclaims in EU countries, taking into account the different and specific fact patterns at hand.

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EU dividend withholding tax reclaims

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