Dividends resulting from foreign investments are subject to taxation under legal provisions of the country where the dividend is paid. Such income is often taxed twice , also in the country of residence of the dividend’s beneficiary, according to the domestic law. As a result, it is clear that the same income suffers double taxes, firstly in the source country and then another time in the beneficiary’s country.
Such taxation can be reclaimed under double taxation agreements between two countries, as well as under European law.

Let’s take an example. When we consider dividend withholding tax levied on dividends paid to collective investment scheme vehicles in Europe, the procedure might consist of two different and independent steps: (i) reimbursement of withholding tax under a Double Taxation Agreement in force between two countries; (ii) reimbursement of withholding tax based on the breach of general EU principles and case law.

Aequitax’s strategy provides the client with a maximum result in term of tax efficiency. The road map set by Aequitax consists of two simultaneous stages: on one hand negotiations with local Tax Authorities; on the other hand immediate filing of the relevant refund claim, in order to prevent any statutory domestic deadline