EU: Retroactive withholding tax exemptions under Interest and Royalties Directive (CJEU judgment)
EU member states may grant retroactive withholding tax exemptions, with deadlines determined by national law.
The Court of Justice of the European Union (CJEU) on March 5, 2026, issued a decision in case C-828/24 regarding procedural aspects of granting withholding tax exemptions under the Interest and Royalties Directive (IRD). The CJEU determined that EU member states may grant withholding tax exemptions retroactively, allowing the exemption to apply to periods preceding the issuance of the administrative decision and the taxpayer’s submission of required documentation.
The CJEU further clarified that the IRD does not impose EU-level deadlines for submitting attestation or supporting documents, nor does it limit the period prior to their submission for which a withholding tax exemption may be granted. Instead, these deadlines must be established under national law.
Read a March 2026 report prepared by KPMG’s EU Tax Centre