62023CJ0602_SUM
Case C‑602/23
Finanzamt für Großbetriebe
v
Franklin Mutual Series Funds – Franklin Mutual European Fund
(Request for a preliminary ruling from the Verwaltungsgerichtshof)
Judgment of the Court (First Chamber) of 30 April 2025
(Reference for a preliminary ruling – Free movement of capital – Restrictions – Tax on income from capital – Undertaking for collective investment in transferable securities (UCITS) – Legal personality – National legislation providing that UCITS do not have legal personality – Tax transparency of UCITS – Tax treatment of foreign undertakings that are comparable to UCITS but that have legal personality – Whether a cross-border situation is comparable to a domestic situation)
Free movement of capital and liberalisation of payments – Restrictions – Tax legislation – Concept of restriction – State measures of a discriminatory nature – Direct or indirect difference in treatment between domestic movements of capital and cross-border movements of capital – Dissuasive effect as regards cross-border movements of capital – Inclusion in the concept
(Art. 63 TFEU)
(see paragraph 45)
Free movement of capital and liberalisation of payments – Restrictions – Tax legislation – Income tax – Less favourable treatment of income paid to non-resident collective investment undertakings compared with that of income paid to resident collective investment undertakings – Dissuasive effect as regards investments by non-resident undertakings – Not permissible
(Art. 63 TFEU)
(see paragraph 46)
Free movement of capital and liberalisation of payments – Restrictions – Tax legislation – National legislation which applies without distinction to resident and non-resident operators – Differentiation based on objective criteria – Potential restriction
(Art. 63 TFEU)
(see paragraph 47)
Free movement of capital and liberalisation of payments – Restrictions – Tax legislation – Taxation of dividends – Non-resident entity comparable to an undertaking for collective investment in transferable securities (UCITS) but having legal personality – Tax transparency of a resident UCITS not allowing it to operate as a legal person – Non-resident entity excluded from the refund of income tax – No restriction – Conditions – Attribution of income received by the non-resident entity to its unit-holders and taxation of that income at the level of those unit-holders
(Art. 63 TFEU)
(see paragraphs 51, 52, 59-62, 64, operative part)
See the text of the decision.