On 11 July 2005, the Luxembourg Administrative Court (Tribunal administratif du Grand-Duch Luxembourg) decided two joined cases (Nos. 18793 and 19298) on the credit of foreign withholding tax against Luxembourg municipal business tax. (a) Facts. The taxpayer was a Luxembourg company (X S.A.), which in 1998 received interest from Spanish sources. Based on Art. 24(1)(b) of the Luxembourg-Spain tax treaty on income and capital of 3 June 1986 (the Treaty), the taxpayer was entitled to a tax credit for the Spanish withholding tax levied on the interest payments. The taxpayer reasoned that the Spanish withholding tax should not only be...