Two groundbreaking decisions for non-EU funds were issued by the Spanish Supreme Court confirming that Spanish withholding tax levied on dividends paid by Spanish corporations to collective investment fund resident in the United States (“US RICs”) was discriminatory and contrary to European law.
On 13 and 14 November 2019, the Spanish Supreme Court issued two judgements in regard to the right of a US RIC to receive a refund of the withholding tax paid on dividends received from Spanish companies. Following the positive decision issued for foreign UCITS funds earlier in the year, this Spanish Supreme Court judgment follows on with a positive decision for US RICs.