Denmark Tax Agency Clarifies Dividend Tax Withholding Refunds for Nonresidents Under Denmark-Germany DTA

The Danish Customs and Tax Administration Jan. 15 posted Decision No. SKM2026.23.LSR, clarifying the refund of Danish dividend taxes withheld for a nonresident investment company. The taxpayer, a German investment company that received dividends subject to the 27 percent withholding tax in Denmark, sought an additional refund under the DTA with Germany. The Tax Agency classified the company as tax transparent before Dec. 15, 2015, and as an independent tax entity thereafter, but the company didn’t elect minimum taxation status under the Taxation Act. On appeal, the National Tax Court found that: 1) an entity must meet the minimum distribution ...