The Entitlement of a Third-country Company to Obtain WHT Refunds on Intragroup Dividends Based on the Free Movement of Capital: The Pending ECJ Case C-533/25, F Corporation and Its Implications

With the request for a preliminary ruling of the German Supreme Tax Court (BFH) of 3 June 2025, VIII R 21/22, the question of whether a Japanese parent company is entitled to a full refund of German withholding tax (WHT) on dividends received from a German subsidiary in which it holds a 100% interest under the free movement of capital under EU law pursuant to Article 63 paragraph 1 of the Treaty on the Functioning of the European Union (TFEU) (C-533/25, F Corporation) has reached the Court of Justice of the European Union (ECJ) for the first time. Can a Japanese parent company or a company resident in a third country outside the EU or EEA invoke European law in the form of the free movement of capital to avoid being taxed less favourably in Germany as the EU source state of dividends than a German parent company domiciled there with dividends? This study examines this question and takes a critical look at the ruling VIII R 21/22 of the BFH. The study is of general importance for companies based in third countries that hold shares in EU subsidiaries.