Denmark WHT refund claims: five year period confirmed

Key changes

On 11 June 2026, the Danish Supreme Court ruled that non-resident taxpayers’ claims for refunds of excess Danish withholding tax are subject to a five-year limitation period, rather than the three-year period previously applied by the Danish tax authorities.

The case concerned claims for a refund of Danish dividend withholding tax and royalty withholding tax where the withholding tax exceeded the final Danish tax liability under applicable double tax treaties.

The Supreme Court confirmed that section 67 A of the Danish Withholding Tax Act applies to refund claims made by non-resident taxpayers and not only to claims raised by the tax authorities or withholding agents.

Implications for Investment Funds

The decision may provide additional refund opportunities for foreign investment funds and other non-resident investors that have suffered excess Danish withholding tax.

Key implications include:

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Five-year limitation period confirmed

Eligible taxpayers may generally claim refunds of excess Danish withholding tax within the five-year limitation period.

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Review of historical WHT positions

Investment funds should consider reviewing Danish dividend and royalty income received during the relevant period to identify potential reclaim opportunities.

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2016 practice change

The Supreme Court decision overturns the Danish tax authorities’ 2016 interpretation change, under which a three-year limitation period was applied to non-resident taxpayers’ refund claims.

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Further guidance awaited

It remains to be clarified how the Danish tax authorities will handle claims affected by the previous three-year practice, including potential refund opportunities relating to the fourth and fifth years and claims impacted by the 2016 practice change.

Key Considerations

The ruling confirms that the five-year limitation period under section 67 A of the Danish Withholding Tax Act applies to refund claims by non-resident taxpayers relating to withholding tax covered by sections 65–65 D, including dividend, interest and royalty withholding tax.
The Supreme Court case itself concerned dividend and royalty withholding tax reclaims; however, the reasoning may be relevant more broadly to other withholding tax refund claims covered by the same provisions.
The availability of a refund remains subject to the taxpayer meeting the relevant conditions, including treaty entitlement, beneficial ownership requirements where applicable, and documentation requirements.
Further guidance from the Danish tax authorities is expected regarding the practical handling of historical reclaims affected by the previous three-year interpretation.

Conclusion

The Supreme Court’s decision provides important clarification for non-resident taxpayers and restores the five-year limitation period for Danish withholding tax refund claims.

Investment funds and other affected taxpayers should assess their historical Danish investments to determine whether additional refund opportunities may be available.