European Commission infringements
Released 17 May 2017
The European Commission has published its monthly summary of infringement decisions.
This month’s edition includes:
Reasoned opinion: Free movement of capital: France - withholding tax imposed on non-resident companies
The Commission has requested that France abolish a withholding tax that applies to dividends received in France by companies based in other EU or European Economic Area (EEA) Member States. By applying a withholding tax on such dividends, the French authorities are failing to fulfil their obligations regarding free movement of capital (Article 63 TFEU and Article 40 of the EEA Agreement). The French Authorities have two months to respond to the opinion or the case may be referred to the Court of Justice of the EU.
Letter of formal notice: Free movement of persons and capital: Belgium - inheritance tax on immovable property
The Commission has decided to send a letter of formal notice to Belgium formally requesting a change to the rules on inheritance tax in Wallonia, which provides for an exemption from inheritance tax when the deceased individual was residing in Belgium but not where the deceased person was living in another country within the European Economic Area. The Commission considers that this is contrary to Articles 45, 49 and 63 TFEU.