Dividend payments to minority shareholders

On 20 December 2011, the European Court of Justice (in C-284/09 EU Commission v Germany) ruled that the German system for taxing dividends paid to minority shareholders that are subject to limited tax liability in Germany and have their seat in another EU/EEA member state constitutes a violation of European law.

The reason for the ruling was that corporations with their statutory seat in Germany were not required to hold at least 10 per cent of the statutory capital of the distributing corporation to benefit from the participation exemption. As a result, the German legislator amended the participation exemption to comply with the requirements of European law with effect from 1 March 2013…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below. 

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

  • Money 317

    Crunch boom

    Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town

View more analysis from The Lawyer


5 New Street Square

Turnover (£m): 228.00
No. of Lawyers: 860
No. of Lawyers (Asia Pacific): 79
Offices (Asia Pacific): 3