The limitation period for reclaiming dividend withholding tax has reduced from five to three years. Taxand Denmark investigates this update.
On 13 June 2016, SKAT, the Danish tax authorities, published new tax directions (styresignal), according to which the limitation period for reclaiming excess dividend withholding tax is reduced from five to three years. This change is a distinct tightening of the previous interpretation of the provision in s. 67A of the Danish Withholding Tax Act (kildeskatteloven).
Individuals and companies receiving dividends from Danish companies on which withholding tax has been levied at a rate exceeding that applicable under Council Directive 2011/96/EU (on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) or a double taxation agreement are entitled to claim reimbursement of dividend tax.
Until recently, such claims were, according to SKAT’s interpretation, subject to s. 67A of the Danish Withholding Tax Act, which stipulates a five-year limitation period.
Discover more: Reduction of limitation period for reclaiming dividend withholding tax
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Individuals and companies entitled to a refund of excess dividend withholding tax and whose claims either date back longer than three years or may risk being time-barred subject to the new three-year limitation period should file their requests for reimbursement of excess dividend tax to SKAT without undue delay and no later than 12 September 2016.
