Denmark: New documentation requirements for standard refunds
Further to our Announcement A17007, dated 11 January 2017, concerning the Danish Tax Authorities (SKAT) implementation of electronic filing of standard reclaims as of 1 April 2017, Clearstream Banking1 would like to inform customers that SKAT has now issued the following new forms, which must be used effective
20 March 2017
when submitting standard reclaims via Clearstream Banking.
The below forms are replacing the old form 06.003 - Claim to Relief from Danish Dividend Tax:
- Form 02.051 - Place of residence statement for companies etc.
- Form 02.050 - Place of residence for private individuals
Impact on customers
Customers wishing to reclaim tax on Danish dividends through the standard refund procedure via Clearstream Banking, must with effective date 20 March 2017, submit the following new reclaim documentation:
Letter of request to Clearstream Banking for reclaim of Danish withholding tax
The letter of request must be provided in original and per reclaim application. It is available on our Tax Forms to use – Denmark page and attached below.
Place of residence statement (Form 02.051 for companies etc. and form 02.050 for private individuals)
The form is required in original and is to be certified by the beneficial owner’s local tax authorities.
It remains valid for one calendar year, meaning from the date it is stamped by the local tax authorities and until the end of the calendar year.
Power of Attorney for Tax Reclaim Process Follow-up
The Power of Attorney for Tax Reclaim Process Follow-up is to be issued by the final beneficial owner to Clearstream Banking in order to grant Clearstream Banking the authority to process and follow up on the submitted tax reclaim.
The power of attorney is to be provided to Clearstream Banking, once in original and will hereafter cover future reclaim request for the applicable beneficial owner.
A Confirmation to the Danish Tax Authorities of borrowed or lent positions
The form must be provided in original and is to be provided per reclaim application. It is available on our Tax Forms to use – Denmark page and attached below. The document must certify, if the shares on ex-date, for which the beneficial owner is requesting a reclaim, was:
- Borrowed (Yes/ No);
- Out of a loan (Yes/ No)
A shareholder loan agreement must in addition be enclosed, if the shares from which the dividend has been received have been borrowed under a shareholder loan agreement.
Furthermore, all reclaim requests must include sufficient supporting documentation to prove that:
- The claimant has received the Danish dividend;
- The claimant is the beneficial owner of the dividend:
- Danish dividend tax has been withheld; and
- The claimant is liable to pay tax in another country covered by a double taxation agreement at the time the dividend distribution was agreed, if a Double Taxation Treaty (DTT) application.
Consequently, when applying for a standard refund of withholding tax on dividends from Danish equities via Clearstream Banking, customers are requested to provide the following supporting documentation, in addition to the normal reclaim documentation:
- Evidence of property ownership: This should be provided in the form of purchase receipts of the shares for which the refund is requested. The documentation must be certified with a stamp and signature from the issuing bank.
- Evidence of the received cash dividend: Evidence should be provided in the form of dividend vouchers or Credit Advices, which must include the tax withheld and the account number to which the dividend has been transferred and bank statements from the foreign bank where it appears that the dividend received has been deposited into the cash account of the beneficial owner. Documentation must be provided from the full financial transfer chain, in case the dividend received has been transferred though several intermediaries and must be certified with a stamp and signature from the issuing bank.
- Statement of holdings from the beneficial owner’s own local bank: This statement must show the number of shares held by the beneficial owner on the record date of the dividend payment for which the refund is requested. The documentation must also be certified with a stamp and signature from the issuing bank.
- Other supporting documentation: Any other documentation which may be requested by SKAT in order for them to determine the eligibility of a beneficial owner for the refund request. The Danish Tax Authorities is reviewing the eligibility of the beneficial owners requesting tax reclaims on a case-by-case basis and consequently further documentation may be requested at any time.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.