Denmark Supreme Court Clarifies Limitation Period for Nonresidents’ Withholding Tax Refund Claims on Dividends, Royalties

The Danish Supreme Court June 11 issued a decision in Case Nos. BS-36976/2025-HJR and BS-36974/2025-HJR, clarifying the 5-year limitation period for refund claims of excess withholding tax. The taxpayers, foreign entities with limited tax liability in Denmark, received dividends and royalties from Danish companies with excess withholding tax beyond tax treaty limits. The tax authorities rejected their refund claims as time-barred under the 3-year limitation period, and the taxpayers argued for a 5-year period under Section 67A of the Withholding Tax Act. On appeal, the Supreme Court found that: 1) Section 67A must be interpreted as covering refund claims for ...