Denmark Tax Agency Clarifies Refund of Withheld Dividend Tax for Nonresident Investment Institutions

The Danish Customs and Tax Administration Nov. 6 posted online National Tax Court Decision No. SKM2025.622.LSR, clarifying the refund of withheld dividend tax for nonresident investment institutions. The taxpayer, a Luxembourg-based investment institution, requested a refund of 15 percent dividend tax withheld on Danish shares for 2010-2013. The Tax Agency denied the request, contending that the taxpayer didn’t opt for distributing status or calculate a minimum distribution under Section 16 C of the Danish Taxation Act. Upon review, the National Tax Court upheld the Tax Agency’s decision, finding that: 1) exemption from withholding tax requires fulfilling Section 16 C conditions; ...