The article comments a decision of the European Court of Justice, where an autonomous interpretation of Art. 5, Paragraph 1, of the Parent - Subsidiary Directive has been adopted. A series of criteria have thus been identified that are suitable to outline the concept of “withholding tax”, which would include any tax which is (a) paid by the distributing company; (b) due upon a distribution of dividends; (c) in direct relationship with the amount of said distribution. The Court has thus has come to the conclusion that even a corporate income tax borne by the distributing company can, under certain conditions, be qualified ad a withholding tax, consequently not permitted by Art. 5, Paragraph 1, of the Directive.