On 20 April 2007, the Finance Court Cologne revised its previous decision of 16 February 2006 on the reduction of dividend withholding taxes (WHT) under the Germany-US income tax treaty in the case of a US S-Corporation which elected to be tax transparent under US tax rules. Details of the decision are summarized below.
(a) Facts. Facts. An "S-Corp" is a company incorporated under US corporate law, which may e…