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Final Withholding Taxation of Portfolio Dividends in the Internal Market

Opinnäytetyöt 3.2.2020, Gradut ja muut tutkielmat

Withholding taxes are an old and tried way for States to ensure the taxation of outbound income payments efficiently. They are widely used both in domestic and in cross-border settings and, for example, every EU State applies at least some type of tax withholding system. The subject of this study is tax withholding as a tax collection method in the internal market. In withholding procedure, the withholding agent charges the tax from the taxpayer’s income on behalf of the State and transfers it to the State on behalf of the taxpayer. The focus is on the relationship of the source State and the taxpayer: what benefits and disadvantages final withholding taxation of portfolio dividends has from the perspective of a non-resident taxpayer, resident in one Member State, and the source State of the dividends, which is another Member State? This study answers the following research questions: What are the benefits and disadvantages of final dividend withholding taxation in cross-border settings in the internal market? What is the current tax treatment of outbound portfolio dividends in the internal market? How could the prevailing system for taxation of cross-border portfolio dividends be refined?
(Edilex-toimitus)

Asiasanat
• Euroopan unioni - Lähdevero - Osinko - Sisämarkkinat - Verotus