France Administrative Court of Appeal of Versailles Clarifies Withholding Tax on Payments to Belgian Company

The French Administrative Court of Appeal of Versailles Dec. 2 issued Decision No. 23VE01270, clarifying the withholding tax on payments made to a Belgian company. The taxpayer, a French company operating in the medical sector, made royalty payments to a related Belgian company for the use of medical facilities. The French tax authorities imposed withholding taxes on payments, arguing that the Belgian company had no permanent establishment (PE). The taxpayer requested the cancellation of the withholding taxes, arguing them to be contrary to French tax laws and EU principles. The Administrative Court of Cergy-Pontois rejected the request. On appeal, the ...