In Denmark, the SOL for standard refund applications submitted was reduced from five years to a three-year period, as mentioned in guidance from the Danish tax authorities (“DTA”) in 2016.
However, investors successfully challenged this change, leading to a favorable ruling from the Danish Tax Court in 2021.
The Danish Tax Court decision has been upheld by the Danish High Court on 2 July 2025. However, the Danish Ministry of Taxation appealed to the Danish Supreme Court on 25 July 2025 which can take 1 to 2 years to issue a decision.
The decision by the Danish High Court reinforces the lack of legality regarding the change made by the DTA.
The current SOL remains three years, but if the Supreme Court affirms the earlier rulings, it could be extended to five years retroactively, potentially allowing cases to be reopened where claims filed within five years have been rejected owing to the application of the three-year statute of limitations.
Therefore, clients are advised to conduct an initial analysis to identify relevant cases in anticipation of a potential extension.
