The Resource The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents

The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents

Label
The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents
Title
The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents
Creator
Subject
Language
eng
Summary
The article analyses the recent Brisal and KBC Finance cases, dealing with a withholding tax levied on an outbound interest payment. In Brisal the Court first confirmed that Member States are permitted to use different techniques for charging a tax on residents and non-residents for the same item of income, i.e. through a final-year assessment and an immediate retention upon the payment. However, the judiciary of Luxembourg found that residents and non-residents are in a comparable situation with respect to the deductibility of operational costs and thus both categories shall be treated equally in this regard. Although this conclusion could most likely have been anticipated in light of precedent decisions of the Court, the judgment in Brisal is, according to the author, equally remarkable since it disrupts a fundamental tenet of taxation of income earned by non-residents without a permanent establishment, i.e. that the source state can levy a withholding tax on the gross amount of such income and that the expenses of the underlying activity have to be considered by the residence state
Citation source
In: EC tax review. - Alphen aan den Rijn. - Vol. 26 (2017), no. 4 ; p. 193-200
http://library.link/vocab/creatorName
Beretta, G
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • ECJ case law
  • interest withholding tax
  • non-resident
  • expenses
  • deductions
Label
The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents
Instantiates
Publication
Label
The Brisal and KBC Finance Decision : once again the CJEU assesses the compatibility with EU law of gross withholding taxation of non-residents
Publication

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