Denmark: Ruling in the Danish High Court regarding Statute of Limitation (SOL) for Danish tax reclaims
LuxCSD informs clients of recent developments concerning Denmark’s statute of limitation for tax reclaims.
In some cases, standard refund applications submitted after the current three-year limitation had been dismissed. However, investors successfully challenged these decisions, obtaining a favourable ruling from the Danish Tax Court. This position was subsequently upheld by the Danish High Court.
On 25 July 2025, the Danish Ministry of Taxation appealed the High Court’s decision, sending the matter before the Danish Supreme Court. Until this point in time, no further details about the Supreme Court proceedings have been released.
The current official statute of limitation remains three years. Should the Supreme Court affirm the earlier rulings in favour of investors, it is anticipated that the statute of limitation may be extended to five years with retroactive effect.
Impact on clients
Until further notice, the statute of limitations is to be considered as three years. Clients are advised to take this into account when submitting standard reclaim applications.
LuxCSD will continue to closely monitor the situation and will provide further updates as additional information becomes available.
This Taxflash is intended to provide clients with general information gathered from different sources that are generally believed to be reliable. LuxCSD S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the client’s own risk and LuxCSD S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |