Earlier this year, the Italian Supreme Court recognised that imposing a withholding tax on dividends paid by Italian resident companies to investment funds established in non-EU/EEA countries results in discriminatory treatment of the latter with respect to investment funds established in Italy. The court found that the tax treatment represented an infringement of the EU principle of free movement of capital.
The cases decided by the Supreme Court concern the Italian tax rules applicable until 1 July 2011, but the decisions also represent a turning point for the tax treatment of non-EU investment funds in subsequent years.
Italian Taxand member firm, Led Taxand, examines the implication of this decision.
Read the full article here.