Czech Republic: Implementation of interest and royalties directive (CJEU referral)

Questions regarding whether directive permits retroactive withholding tax exemptions 

Share
February 7, 2025

The Supreme Administrative Court in November 2024 submitted a request for a preliminary ruling to the Court of Justice of the European Union (CJEU) in case C-828/24 concerning the compatibility of the Czech implementation of the interest and royalties directive (IRD) with EU law.

The case involves a company resident outside of the Czech Republic that applied for an exemption from Czech withholding tax on royalty payments for the years 2014-2018. The Czech tax authorities granted the exemption for 2017 and 2018 but denied it for 2014-2016, citing an expired deadline for claiming the exemption. The Supreme Court raised concerns about whether the exemption could be applied retroactively and whether the exemption decision is a substantive or formal condition.

The Supreme Administrative Court asked the CJEU to clarify if the IRD permits retroactive tax exemptions and if there are deadlines or limits on how far back exemptions can apply.

Read a February 2025 report prepared by KPMG’s EU Tax Centre

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline