Thursday, 17 May 2012

Spanish Supreme Court denies 0% dividend withholding tax under EU Parent Subsidiary Directive

Two recent decisions by the Spanish Supreme Court dated 21 March 2012 confirm the lower courts’ resolutions that denied the application of the 0% dividend withholding tax under the EU Parent-Subsidiary Directive on the distribution of dividends by a Spanish subsidiary to its Dutch parent entity. The ultimate parent company of the multinational group to which both the Spanish subsidiary and the Dutch parent belong is US resident.
Source & more info: Ernst & Young