14 June 2016 Danish Tax Authorities limit dividend withholding tax refund period from five to three years with a three month transitional period The Danish Tax Authorities (SKAT) published a change of practice notice on June 13, reducing the statute of limitations (SOL) for dividend withholding tax refunds to three years from the previous five year period. The current SOL for such claims has in practice been five years starting from the 10th day in the month following the month of the declaration of the dividend, i.e., five years from the deadline for paying the taxes withheld to SKAT. However, if a tax treaty with Denmark allows for a longer SOL, the taxpayer will still be able to rely on the SOL governed by the treaty with regards to refunds under a tax treaty. According to SKAT, the change of practice is based on a new interpretation of the Danish SOL rules. Document ID: 2016-1030 |
