Denmark’s Supreme Court has confirmed that non-resident refund claims for excess Danish withholding tax are generally subject to a five-year limitation period, not the three-year period the tax authorities had been applying. That makes the ruling materially helpful for investors with historic Danish dividend and royalty reclaims, and potentially for related WHT positions more broadly.
The key issue was whether refund claims fall under the special five-year rule in section 67 A of the Danish Withholding Tax Act or the general three-year limitation period. The Court held that section 67 A applies to non-resident taxpayers’ refund claims, which restores the five-year window for those claims.
This opens additional reclaim opportunities for foreign investors and investment funds that suffered excess Danish WHT on dividends or royalties. Historical positions that were previously considered out of time under the three-year approach may now be reviewable again within the five-year period. In practice, that can mean reclaiming tax that exceeded the final treaty-based liability.
The ruling does not remove the normal substantive requirements for a refund claim, including treaty entitlement, beneficial ownership where relevant, and documentation. It also leaves some practical questions open, especially how the Danish tax authorities will treat claims affected by the 2016 practice change and whether older claims can still be revived. For investors with Danish portfolios, the sensible next step is to review dividend, interest, and royalty flows over the last five years and identify claims that may still be in range.
For Globe Refund, this ruling is a strong reminder to revisit Danish WHT files where refunds were previously stopped at three years. A focused review of historical Danish dividends, royalty streams, and treaty positions could uncover recoverable amounts that were left on the table under the earlier administrative practice.
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