Reclaim withholding tax on dividends – Third country claimants · Final tax burden: 26.375% 15%...

Reclaim withholding tax on dividends –Third country claimantsFinancial Services KPMG Germany—2016

2© 2016 KPMG AG Wirtschaftsprüfungsgesellschaft, ein Mitglied des KPMG-Netzwerks unabhängiger Mitgliedsfirmen, die KPMG International Cooperative („KPMG International“), einer juristischen Person schweizerischen Rechts, angeschlossen sind. Alle Rechte vorbehalten.

Content

German Withholding – Tax on dividends violates EU-Law1Cash refund opportunity2

Our services34 Our Team

5 Fees

6 Other opportunity states


Tax on dividends violates EU-Law1. German Withholding

Germanfund / corporation

Third countryfund / corporation

Obvious difference in treatment!

German investment funds and pension funds receive full refund of WHT on dividends from German companies

German tax legislation

WHT refund / exemption

Gross dividend 100

DTT benefits may allow a reduction of the tax burden to the DTT rate of usually 15%

26.375% WHT

Net dividend100 (fund)95 (corporation)

Net dividend74,62585 (DTT)

Final tax burden:26.375%15% (if DTT applicable)

Germany

German Co

Third country(No-EU/EEA)

German corporations receive a tax exemption for the WHT on dividends from German corporations (only 0.8% effective tax burden due to flat

Third country funds, pension funds and corporations are taxed with the full WHTrate – tax burden 26.375%*

* of the dividend amount


2. Cash refund opportunity

Reclaim potential

*we offer our assistance for regular DTT relief filing as well (complete refund approach)

26.375%of the dividend

amount

15%(if DTT

applicable*)of the dividend

amount


3. Our services

Litigation before the national Finance Courts and the ECJ

Filing the claims at the Central Tax Office and the competent local tax offices

Preliminary studyPreliminary study of options (evaluation of entities and specific funds (inter alia, comparability analysis) and following advice

Case by case analysis

Claims will be based on cases analyzed by the European Court of Justice (ECJ), the EFTA Court and the EU-Commission

Litigation

Complete filing


Preliminary study

Complete Filing

We offer a wide scope of WHT refund services

Litigation


Preliminary study

Complete filing

3. Our services


Preliminary study of options (evaluation of entities and specific funds (inter alia, comparability analysis) and following advice

Complete Filing

Litigation

Complete filing


Preliminary study

We offer a wide scope of WHT

refund services LitigationLitigation


Preliminary study Case by case analysisCase by case analysis


Idee


Preliminary study Case by case analysis

Complete filing

3. Our services


Preliminary study of options (evaluation of entities and specific funds (inter alia, comparability analysis) and following advice


Complete Filing LitigationLitigation


Preliminary study Case by case analysis

We offer a wide scope of

WHT refund services

Idee


Extensive experience in assisting clients in filing witholding tax reclaims with German tax authorities…

…for a great number of pension funds, investment funds, insurance companies, charities, government-owned organisations etc.

Team-mix of dedicated Financial Services professionals and leading EU direct tax law specialists.

4. Our Team


5. Fees

One stop service and small all-in one fee (claim preparation)

1

23456

Due to long experience we provide a fee bearable by a client even in case of filing with a big number of tax offices

Fees depend on number of funds / subfunds / claimed years

Synergetic effects (number of claims prepared in the past, number of funds / subfunds of the same managing company) will be considered in favour of the client

test case (one pilot decision) possible

Court fees depend on the claim value (advance payment required, repayment in case of success)

KPMG litigation fees will be agreed individually


5. Fees

— Fees depend on number of funds / subfunds / claimed years

— Synergetic effects (number of claims prepared in the past, number of funds / subfunds of the same managing company) will be considered in favour of the client

— Due to long experience we provide a fee bearable by a client even in case of filing with a big number of tax offices

— KPMG litigation fees will be agreed individually

— test case (one pilot decision) possible

— Court fees depend on the claim value (advance payment required, repayment in case of success)

One stop service and small all-in one fee (claim preparation)

Idee


6. Other opportunity states

SwedenFinlandFrance Netherlands

Reclaim potential is not limited to Germany

Reclaim potential in:

See the following slides

Germany

Third countries


France6.1 Opportunity state

French tax legislation

25% or 15%

(DTT rate)

French investment funds and tax exempt vehicles receive full refund of WHT on dividends from French companies.

French fund /tax exempt vehicle

Third country fund /tax exempt vehicle

WHT refund

Gross dividend 100

25 % WHT

Net dividend100

Net dividend7585 (DTT)

Final tax burden:25%15% (if DTT applicable)

France


French Co Reclaim potential

Third country investment funds and tax exempt vehicles (e.g. insurance companies) are taxed with the full WHTrate – tax burden 25%.

DTT benefits may allow a reduction of the tax burden to the DTT rate of usually 15%.


Netherlands6.2 Opportunity state

Netherlands tax legislation

15%

Dutch fund / tax exempt vehicle

Third country fund /tax exempt vehicle

WHT refund

Gross dividend 100

15% WHT

Net dividend100

Net dividend85

Final tax burden:15%

Netherlands

Dutch Co Reclaim potential

Third country funds / tax exempt vehicles (e.g. Sovereign wealth fund or charities) are taxed with the full WHT rate of 15%.

Tax exempt Dutch investment funds and tax exempt vehicles (e.g. charities) receive full refund of WHT on dividends from Dutch companies.



Finland6.3 Opportunity state

Finnish tax legislation

28% funds 8,5%(pens. funds)

or 15%(DTT rate)

Finnishfund / pension fund

Third countryfund / pension fund

WHT refund / partial exemption

Gross dividend 100

28% WHT

Net dividend100 (fund)80,5 (pens. fund)


Finland

Finnish Co Reclaim potential


Finnish investment funds receive full refund of WHT on dividends from Finnish companies.

Finnish pension funds benefit from a partial exemption leading to an effective tax rate of 19.5% for WHT on dividends.

Third country funds / pension funds are taxed with the full WHT rate –tax burden 28%.

DTT benefits may allow a reduction of the the tax burden to the DTT rate of usually 15%.



Sweden6.4 Opportunity state

Swedish tax legislation

30% or 15%

(DTT rate)

Swedish fund / tax exempt vehicle

Third country fund / tax exempt vehicle

No tax, or refund of WHT

Gross dividend 100

30% WHT

Net dividend100 (fund)80,5 (pens. fund)


Sweden

EU/EEA-country

Swedish Co Reclaim potential


Swedish investment funds usually receive a full deduction of WHT on dividends from Swedish companies.

Swedish pension funds suffer no WHTon dividends from Swedish companies.

Swedish charities are under circumstances exempted from tax or entitled for a refund.

DTT benefits may allow a reduction of the tax burden to the DTT rate of usually 15%.

Third country funds / pension funds / charities corporations are taxed with the full WHT rate – tax burden 30%.

Die enthaltenen Informationen sind allgemeiner Natur und nicht auf die spezielle Situation einer Einzelperson oder einer juristischen Person ausgerichtet. Obwohl wir uns bemühen, zuverlässige und aktuelle Informationen zu liefern, können wir nicht garantieren, dass diese Informationen so zutreffend sind wie zum Zeitpunkt ihres Eingangs oder dass sie auch in Zukunft so zutreffend sein werden. Niemand sollte aufgrund dieser Informationen handeln ohne geeigneten fachlichen Rat und ohne gründliche Analyse der betreffenden Situation.

© 2016 KPMG AG Wirtschaftsprüfungsgesellschaft, ein Mitglied des KPMG-Netzwerks unabhängiger Mitgliedsfirmen, die KPMG International Cooperative („KPMG International“), einer juristischen Person schweizerischen Rechts, angeschlossen sind. Alle Rechte vorbehalten. Der Name KPMG und das Logo sind eingetragene Markenzeichen von KPMG International.

www.kpmg.de

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Your KPMG Contacts

Andreas PatznerPartner, Financial ServicesT +49 69 9587 2696F +49 69 9587 [email protected]

Jürgen NaglerSenior Manager, International TaxT +49 69 9587 2254F +49 69 9587 [email protected]

Detlef MannSenior Manager, International TaxT +49 69 9587 1143F +49 69 9587 [email protected]

Reclaim withholding tax on dividends – Third country claimants · Final tax burden: 26.375% 15%...

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