Italian Court of Cassation holds EU regime on dividend distributions is also applicable to pension funds not qualifying as EU/EEA

The Italian Court of Cassation held that the withholding tax rate difference between qualifying European Union (EU) or European Economic Area (EEA) and non-EU/EEA pension funds violated the principle of free movement of capital under Article 63 of the Treaty on the Functioning of the European Union (TFEU).

Based on the decision, foreign pension funds not qualifying as EU or EEA are eligible for the same tax treatment as EU or EEA funds.

Impacted nonresident pension funds should consider the approp…