Following the German Federal Fiscal Court’s (BFH) ruling on 21 August on the KPMG test cases (IR 01/20, IR 02/20), investment funds are entitled to a refund of German unduly paid taxes. This is significant for foreign investment funds, as it paves the way for the refund of dividend withholding taxes that were unduly paid in Germany for years prior to 2018.
This judgement sets a crucial precedent, potentially influencing the outcome of pending cases and guiding future tax refund claims by foreign investment funds.
