European investors face hurdles in reclaiming withholding tax
According to a recent study conducted by Brussels-based NGO Better Finance and Germany’s DSW, reclaiming withholding tax in Europe remains an arduous and costly endeavor. The study, which surveyed 3,000 European investors, unveiled the considerable challenges faced by non-professional investors in reclaiming taxes paid twice on cross-border dividend income, making it financially impractical. The European Commission is poised to present proposals in June to alleviate obstacles and prevent double taxation.
How billions leak from institutional investors
Institutional investors every year miss out millions of euros because they do not recover withholding tax paid abroad. The reason: suboptimal communication and cooperation between institutional investors and a “custodian” that does not or not always fully perform the service formally assumed.
Luxembourg SICAVs can reclaim Belgian subscription tax and withholding taxes
In a number of recent judgements, the Court of Appeal in Brussels has confirmed previous case law of the court of first instance that the subscription tax on Luxembourg SICAVs is in violation of the double taxation treaty. Tiberghien Lawyers was one of the first to raise this issue 15 years ago and is therefore pleased with the verdicts.
‘It’s worth investigating the possibilities of reclaiming this tax (and Belgian withholding tax),’ say Lawyers Yannick Cools and Bart De Cock of Tiberghien Lawyers.