The European Court of Justice ruled (ECJ 13 November 2019 – C-641/17) that the definitive withholding tax levied on German dividends received by foreign pension funds infringes the principle of the free movement of capital (Article 63 of the Treaty on the Functioning of the European Union), provided that the foreign pension fund is in an objectively comparable situation as a domestic pension fund (Pensionsfonds). This is the case if a foreign pension fund allocates the received dividends either pursuant to the law in force in the state of residence or on a voluntary basis to its reserves for pension payment obligations. In this beinformed we explain the background as well as the practical implications of the ruling and who may benefit therefrom. We are happy to assist your Tax Department to reclaim your German WHT.