General information - types of securities, deadlines, other market specifics - Denmark


Types of securities eligible in LuxCSD

The eligible securities issued in Denmark are as follows:

  • Government bonds;
  • Treasury bills;
  • Treasury notes;
  • Mortgage bonds;
  • Corporate bonds;
  • Equities.

Types of beneficial owner recognised in Denmark

The following types of beneficial owner are recognised for tax purposes in Denmark:

  • Residents of a Double Taxation Treaty (DTT) country;
  • Tax exempt entities;
  • Qualifying U.S. pension funds;
  • Residents of a country with an international treaty or convention with Denmark.

Reclaim prerequisite

For a qualifying U.S. pension fund to be able to apply for a full standard refund of Danish withholding tax, it must be in possession of a “frikort” (free card).
In order to obtain a “frikort”, the pension fund must submit the following documentation directly to the Danish Tax Authorities:

  • Claim of Tax Treaty Benefits, in which the U.S. pension fund certifies that it meets all the conditions as specified in the DTT; and
  • U.S. Internal Revenue Service Form 6166, U.S. Residency Certification Letter, confirming that the U.S. pension fund has filed a U.S. income tax return.

The “frikort” is valid for 10 years from the date of issuance.

Deadlines for obtaining relief or reclaiming withholding tax

Standard refund

The statutory deadline for reclaiming withholding tax, applicable to reclaims submitted via standard refund procedures, are generally three years after the date on which the dividend was distributed.

Note: Certain countries may have a longer statutory deadline than three years, as stipulated in the relevant Double Taxation Treaty. In such cases, this deadline will still continue apply.

The deadline by which LuxCSD must receive the documentation at least two months before the statutory deadline. All standard refund applications received after this deadline will be processed by LuxCSD on a "best efforts" basis. However, in such cases, LuxCSD will apply an extra charge and accepts no responsibility for forms that have not reached the Danish Authorities by the date considered as being the statute of limitations deadline.

When are refunds received?

Standard refunds

The estimated time for receiving a standard refund is one month from the date of receipt by the Danish Tax Authorities, although this can vary depending on when the application is filed and the complexity of the information supplied in the reclaim form.

Notes on tax reclaims

Customers warrant the completeness and accuracy of the information they supply to LuxCSD.

It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. LuxCSD is under no obligation to carry out any investigation in respect of such information.

With respect to tax reclaims in general, customers are reminded that LuxCSD accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due.