Italian Tax Court Judgement Regarding Luxembourg SICAV Spells Good News for Global Investors with Italian Investments
The Provincial Tax Court of Pescara issued a judgement on 7 February 2022 (Decision No. 49). The judgement established that a Luxembourg SICAV (Société d’investissement à Capital Variable) in accordance with the Directive 2009/65/EC of the European Parliament (“UCITS Directive”) is eligible for a full refund of Italian withholding taxes levied on dividends. The judgement’s determining factor is that the Luxembourg SICAV is deemed comparable to an Italian investment fund.
Foreign Sourced Income Tax Changes in Malaysia — Now Taxable With Limited Relief Until 2026
Historic Treatment of Foreign Sourced Income From 2004 until 1 January 2022, Foreign Sourced Income (“FSI”) received in Malaysia by Malaysian taxpayers was exempt from income tax under Paragraph 28, Schedule 6 of the Income Tax Act, 1967, apart from a resident company carrying on the business of banking, insurance or sea or air transport.
Opinion: Advocate General of the CJEU Finds Finnish Tax Exemption for Contractual Investment Funds Contrary to EU Law
CJEU Advocate General Issues Opinion on Finnish Tax Exemption Relating to Investment Funds On 6 October 2021, the Advocate General of the Court of Justice of the European Union (CJEU) issued an opinion on case C-342/20 Veronsaajien oikeudenvalvontayksikkö (Exonération des fonds d’investissement contractuels) pertaining to Finland’s tax-exemption regime for contractual investment funds. The Advocate General concluded that this regime contains a restriction on the free movement of capital.
The Solution to Successful WHT Recovery for Individuals
WHT can be as high as 35% when investing internationally, which results in a material impact on investment performance. In some instances, WHT recovery can increase dividend yields by up to 50 basis points.
Seeking True North: How to Manage The Challenges of International Withholding Tax as an Investor
Cross-border taxation is complicated at the best of times. However, harnessing the refund opportunities embodied in taxation legislation can be even more daunting for any investment firm’s finance team.
Denmark Denies Dividend Withholding Tax Refunds to Foreign Investment Funds Pursuant to Recent Supreme Court Ruling
Overview and Case Outcome The much-anticipated Danish Supreme Court judgement in respect of the Fidelity Funds Case (Case 59/2019) was finally handed down on 24 June 2021. The main question posed in the Fidelity Funds case was whether it is in line with EU law that foreign investment funds suffer withholding tax on dividends distributed from Danish shares, while Danish resident investment funds which have elected to be taxed under section 16C of the Tax Assessment Act (TAA) (often referred to as “investment funds with minimum taxation”) are exempt from tax on Danish-sourced dividends.
Contractual Finnish UCITS Ruled Comparable to Corporate Luxembourg SICAV by CJEU
A judgement rendered by the Court of Justice in the European Union (CJEU) on 29 April 2021 in case C-480/19 – Veronsaajien oikeudenvalvontayksikkö (Revenus versés par des OPCVM) (“C-480/19”), could help non-Finnish corporate form investment funds (such as Luxembourg SICAVs) justify their eligibility for preferential Finnish withholding tax treatment going forward. Unlisted Luxembourg SICAVs have suffered unfavourable withholding taxes on Finnish sourced dividends for many years, but a new CJEU ruling could be the start of full withholding tax recovery for corporate-form investment funds.
Foreign Withholding Tax Reporting: Why Access, Transparency and Expertise are Key
Access to WHT Reclaim Reporting As an investor, the importance of optimizing foreign withholding tax (WHT) recoveries cannot be overstated. Reducing tax drag has an appreciable effect on investment performance, even more so if the reclaimed funds are reinvested over an extended period.