Cross-border income (e.g. dividends and interest) is often subject to withholding tax in the source state. However, according to the world income principle, the investor is at the same time liable to tax on this income in his state of residence.
The aim must be to avoid a double tax burden in both states.
Double taxation agreements (so-called DTAs) and European law offer numerous possibilities for avoiding double taxation and optimising the existing tax burden. The ECJ and the EFTA Court have, among other things, declared the withholding tax collection practice of various EU states to be not in conformity with European law in the court rulings Santander, Aberdeen Finnivest, Fokus Bank and in other recent rulings.
We offer investment funds, pension institutions, companies, other institutional investors and private investors a comprehensive range of services for EU-based withholding tax refund claims, refund procedures according to DTAs as well as other topics in international tax compliance (e.g. 3 percent tax France, India, Taiwan, USA, etc.) with the involvement of the international KPMG network.
Our offer in the building block model includes a fully comprehensive support from the origination of the withholding tax burden, the validation of the prospects of success in the individual case (taking into account possible limitation periods), the preparation, review and submission of refund claims up to the consideration of refund payments.
Partner, Financial Services Tax
KPMG AG Wirtschaftsprüfungsgesellschaft
Furthermore, we are happy to support you in applying for advance exemptions. Pre-exemption procedures can minimise the administrative effort and thus reduce the costs for optimal withholding tax retention.
Our services are already used by major German and foreign asset managers, insurers and capital management companies.