Council Directive 2011/96/EU of 30 November 2011 on the… Article 7

Article 7

1.   The term ‘withholding tax’ as used in this Directive shall not cover an advance payment or prepayment ( précompte ) of corporation tax to the Member State of the subsidiary which is made in connection with a distribution of profits to its parent company. 2.   This Directive shall not affect the application of domestic or agreement-based provisions designed to eliminate or lessen economic double taxation of dividends, in particular provisions relating to the payment of tax credits to the recipients of dividends.