CJEU Holds Differing French Tax Treatment of Dividends Received by Resident and Non-Resident Loss-Making Companies Violates EU Law

On 22 November 2018, the Court of Justice of The European Union (CJEU) issued its judgment concerning whether the differing French tax treatment of dividend income of a resident company versus a non-resident company constitutes a restriction on the free movement of capital in violation of EU law.

The case involved three Belgium-based companies, Sofina SA, Rebelco SA, and Sidro SA, which received dividends as shareholders in French companies between 2008 and 2011. Since these financial years…