The time for withholding taxes is now

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KPMG has reported that dividends paid by a Finnish company to a Luxembourg tax exempt fund cannot have tax deducted from them in Finland if a payment within Finland would not have had that tax deducted.

The decision is predictable but the response should be just as predictable. All EU countries should deduct tax at source on dividend payments with credit only be allowed for offset against tax due in the recipient state.