Germany: Inter-corporate dividend withholding tax hinders free movement of capital

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Germany: Inter-corporate dividend withholding tax hinders free movement of capital

December 15 2011

In a case brought by the European Commission (EC) (C-284/09 Commission v Germany, judgment of October 20 2011), the European Court of Justice (ECJ) held that Germany’s withholding tax on dividends to other corporations is in breach of community law in that it discourages persons from abroad from investing in Germany.

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