This article is part of the PLC multi-jurisdictional guide to Tax on Transactions. For a full list of contents visit www.practicallaw.com/taxontransactionshandbook. Dividend tax is frequently referred to the ECJ and various EU member states have had aspects of their domestic legislation struck down. The European Commission has taken legal action against a number of member states whose dividend rules do not comply with the EC Treaty (TFEU). This article examines the legal framework, inbound dividends, outbound dividends, whether double-tax treaties can cure discrimination, and EEA and third countries.