The Advocate General’s Opinion in Case C-241/25 confirms the Court of Justice of the European Union’s case law holding that a definitive withholding tax on dividends paid to loss-making non-resident companies is incompatible with the free movement of capital where the source state grants more favourable treatment to resident companies in the same circumstances. The Opinion further clarifies that the source state may not make the deferral of taxation conditional upon recalculating the non-resident company’s tax losses under its domestic tax rules.
Published in La Circolare Tributaria no. 28/2026 by Euroconference.
