In May 2024, the Court of Justice of The European Union (CJEU) once again confirmed that Portugal's Withholding Tax (WHT) regime was in violation of Article 63 of the Treaty on the Functioning of the European Union (TFEU).
The case no. 02412/21.7BELRS concerns a U.S. investment fund subject to withholding tax (WHT) on its dividends received from Portuguese companies, while resident investment funds were exempt from such taxes.
These practices violate the free movement of capital guaranteed by Article 63 of the TFEU.
While the Portuguese government argued that the WHT was necessary to prevent tax avoidance, the CJEU stated that this does not justify such discrimination.
These victories confirm once again that non-resident funds are eligible for WHT refunds if their dividends were subject to overtaxation.
In 2024, we defended the interests of several investment funds receiving dividends from Portuguese companies by successfully recovering these wrongly levied WHTs.
If the investment funds managed by your companies invest in Portugal, you can assess the tax situation of the relative dividends by clicking on the button below.
Our work focuses on providing outsourced withholding tax recovery services to safeguard your investments from over-taxation and save your time from burdensome processes.
