Epson Europe (Approximation of laws) [2000] EUECJ C-375/98 (08 June 2000)

Epson Europe (Approximation of laws) [2000] EUECJ C-375/98 (08 June 2000)

Article 5(4) of Directive 90/435/EEC, which sets limits on withholding tax rates for profits distributed by Portuguese subsidiaries to parent companies in other Member States, applies not only to corporation tax (IRC) but also to any other taxation, regardless of its designation, that takes the form of a withholding...

Source-derived case information.

Citation
[2000] EUECJ C-375/98
Parties
Appellant: Fazenda Pública; Respondent: Epson Europe BV
Jurisdiction
European Union
Judgment Date
08 June 2000
Procedural Posture
Preliminary Ruling (ecj) / Reference From National Supreme Administrative Court
Outcome
Preliminary ruling issued; Article 5(4) applies to all withholding taxes on dividends, not just IRC.
Legal Topics
Parent Subsidiary Directive, Withholding Tax, Double Taxation, Interpretation of EU Directives
European Union Law Tax Law Parent Subsidiary Directive Withholding Tax Double Taxation Interpretation of EU Directives

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Parties

Fazenda Pública

Appellant

Epson Europe BV

Respondent

Procedural Posture

Preliminary Ruling (ecj) / Reference From National Supreme Administrative Court

Legal Issues

  1. 1 Whether Article 5(4) of Council Directive 90/435/EEC limits apply only to corporation tax (IRC) or also to other withholding taxes such as ISD levied on dividends distributed by Portuguese subsidiaries to parent companies in other Member States

Ratio Decidendi

Article 5(4) of Directive 90/435/EEC, which sets limits on withholding tax rates for profits distributed by Portuguese subsidiaries to parent companies in other Member States, applies not only to corporation tax (IRC) but also to any other taxation, regardless of its designation, that takes the form of a withholding tax on dividends.

Court Disposition

Preliminary ruling issued; Article 5(4) applies to all withholding taxes on dividends, not just IRC.

Orders

  • Article 5(4) of Council Directive 90/435/EEC must be interpreted as meaning that the derogation relates not only to corporation tax but also to any taxation, of whatever nature or however described, which takes the form of a withholding tax on dividends distributed by such subsidiaries.