Denmark: Limitations period for dividend withholding tax refund claims, reduced

Denmark: Limitations for dividend withholding tax

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.

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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: 

  • Claims for refund already filed are subject to the five-year statute of limitations.
  • Claims filed between today and 13 September 2016 are subject to the five-year statute of limitations.
  • Claims filed after 13 September 2016 are subject to the reduced three-year statute of limitations.

KPMG observation

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 |

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