The Danish tax authorities on 13 June 2016 issued administrative guidance that reduces the statute of limitations for filing Danish dividend withholding refund claims (reclaims) from five years to three years, going forward. The reduction in the statute of limitations is based on a different interpretation of statutory language.
The statute of limitations is calculated by starting on the date of payment of the tax, which is the 10th day of the month following the dividend date—i.e., under the new guidance, the statute of limitation for a dividend paid in September 2013 will be 10 October 2016.
According to the guidance, the new limitations period rule is effective three months from the date the change was made public. Accordingly:
Based on the new guidance, prudent taxpayers would file both ordinary treaty reclaims as well as reclaims based on EU discrimination arguments as soon as possible and before 13 September 2016 if the refund claims are related to dividends paid more than three years ago but not yet time-barred by under the five-year rule.
For more information, contact a tax professional with the KPMG member firm in Denmark:
Martin Reng | +45 5374 7023 | firstname.lastname@example.org
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.