Netherlands: CJEU judgment, withholding tax on non-resident portfolio shareholders

Netherlands: CJEU judgment, withholding tax

The Court of Justice of the European Union (CJEU) today issued a judgment in combined cases, holding that Dutch withholding tax on non-resident portfolio individual and corporate shareholders would be contrary to EU law if the tax burden on the non-resident is greater than it would be for a resident shareholder. In this respect, the comparison would need to take into account the corporate / individual income tax position of residents, and whether they could claim a credit or obtain a refund of the withholding tax.


Related content

The CJEU explained that in comparing this tax burden, only costs that are directly related to the collection of the dividends would be taken into account. A provision in a tax treaty could neutralize the breach of EU law if it results in a credit of the full amount of the withholding tax.


Read a September 2015 report prepared by KPMG’s EU Tax Centre: CJEU decision in the joined cases Miljoen, X, and Société Générale

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.