Denmark: New simplified quick refund procedure for tax withheld on dividends
Effective
immediately
a new simplified quick refund procedure is available, applicable to dividends from Danish equities held by Clearstream Banking1.
Note: The standard refund procedure remains available through Clearstream Banking.
Background
Previously, only the standard refund procedure was available through Clearstream Banking. The new quick refund procedure will now give customers an alternative solution in order to speed up and simplify the documentation requirements for the refund process.
Quick refund procedure
Dividend payments on Danish equities remain subject to withholding tax at the standard rate (currently, 27%). With the new quick refund procedure, qualified beneficial owners may benefit from a quick refund as described in the following sections.
Who can obtain a quick refund?
Qualified beneficial owners must be eligible under a respective Double Taxation Treaty (DTT) between their country of residence and Denmark. Exempt entities are currently not eligible.
Documentation requirements
In order to apply for a quick refund of withholding tax on dividends from Danish equities, the following documents must be submitted to Clearstream Banking by the prescribed deadlines:
- A One-Time Certificate for the Danish Quick Refund Scheme
The certificate is to be provided once and is valid until revoked. (A version of the form is attached to this Announcement.) - A valid Certificate of Residence issued by the beneficial owner’s local tax authorities
The certificate must be signed, stamped and dated before the first dividend payment date to which it applies, but within the same year in which the dividend was paid by the issuer. It must be provided annually and before the first quick refund request. - A list of beneficial owner details via electronic upload
The upload is performed via our Upload BO List facility (available on the Clearstream website under Asset Services / Tax Services) and must be done per quick refund application. Several beneficial owners can be included on the same sheet but each sheet must relate to only one payment date, one ISIN and one customer account number.
Deadline for the receipt of documents by Clearstream Banking
The statutory deadline for reclaims submitted via the quick refund procedure is the same as that for standard reclaims of withholding tax; that is, generally five years after the date on which the dividend was distributed.
The deadline by which Clearstream Banking must receive the required documentation is at least two months before the statutory deadline.
N.B.: Under the specific DTTs between Denmark and each of Germany, The Netherlands, Poland and Switzerland, the deadline for reclaiming withholding tax is specified as less than five years but, according to confirmation from the Danish Ministry of Taxation, the five-year deadline is now deemed to be valid for beneficial owners resident in those countries also.
When are refunds received?
The estimated time for receiving a quick refund is one or two weeks from the date of receipt by the Danish Tax Authorities.
Further information
The Clearstream Banking Market Taxation Guide - Denmark has been updated to reflect the above information.
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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