Denmark: Supreme Court confirms 5-year reclaim period for WHT reclaims - Further information
Further to Announcement L26021, LuxCSD1 informs clients that the Danish Tax Authorities (DTA) have provided updates regarding the transition to the new five-year statute of limitations for withholding tax (WHT) reclaims.
1. Pending reclaims
Reclaims currently pending DTA review will now be evaluated under the 5-year deadline instead of the previous 3-year limit.
2. Previously rejected reclaims (to be re-opened by the DTA)
The DTA will automatically re-open reclaims that were previously rejected for missing the 3-year deadline, provided they fall within the 5-year limit under these conditions:
- Dividend pay date on or after 11 June 2021:
- Will be re-opened (regardless of whether they were rejected before or after June 11, 2025).
- Dividend pay date before 11 June 2021:
- Rejected before 11 June 2025: Will remain closed.
- Rejected after 11 June 2025: Will be re-opened.
For more details, please view the DTA Statement: Claiming refund of Danish dividend tax.
Impact on clients
- New deadline: Standard tax reclaims will now have a 5-year statute of limitations instead of the previous 3 year. LuxCSD must receive all reclaim documentation at least two months before this statutory deadline.
- Direct follow-up required: LuxCSD does not monitor the re-opening of tax reclaims. Clients are strongly advised to contact the DTA directly to ensure their previously rejected reclaims are re-opened.
- Outstanding clarifications: The dispute originates from a DTA administrative practice change on 1 June 2016. The DTA has not yet confirmed if it will re-open all reclaims rejected under the 3-year rule dating back to 2016. LuxCSD will provide updates as soon as this is clarified.
Further information
Clients may contact the Tax Help Desk, LuxCSD Client Services or their Relationship Officer.
------------------------------------------
1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.