The Council of State has referred a question to the CJEU regarding the compatibility of the payroll tax with the Parent-Subsidiary Directive

We had already noted last October that the payroll tax system raised questions regarding its compatibility with the Parent-Subsidiary Directive, and more specifically regarding the inclusion of dividends in the tax liability calculation.

As part of the appeal against the ruling we had reported, the Conseil d'Etat, deeming the issue serious enough, decided to refer a preliminary question to the Court of Justice of the European Union.

You can find more details in the article published at the time: Opportunity to File a Tax Claim: Payroll and Dividend Tax

If the Court of Justice has not issued a ruling by the end of the year, it may be advisable for companies to file claims in order to protect their rights.

We work with Cyplom, a firm specializing in VAT and payroll taxes, to provide our clients with the best possible support.

We're here to talk if you'd like to discuss this further: please contact us.

EC, Chapters 9 and 10, July 7, 2026, No. 508944, unpublished

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