On December 4, 2024, a request for a preliminary ruling was lodged with the CJEU seeking detailed information on the liability under the Interest and Royalties Directive (IRD) in cases where at the moment of payment procedural obligations to apply exemption has not been fulfilled, although the substantive conditions for exempting payment under the directive were met.
The dispute arose from a late application for a decision confirming the applicability of the IRD exemption. Under Czech domestic law, which implements one of the options available to member states in the IRD, the issuance of this decision for a taxpayer is required for the remitter not to withhold tax.
