Denmark Tax Agency Posts Decision Clarifying Withholding Taxes on Dividend Distribution Under DTA With Luxembourg

The Danish Customs and Tax Administration Sept. 25 posted online the Supreme Court’s judgment in Case No. 34/2022, clarifying withholding taxes on a dividend distribution, under the 1980 DTA with Luxembourg. The taxpayer, a Danish company, distributed dividends received from a Luxembourgish parent company. The Danish tax agency required the payment of withholding taxes on the dividends. On appeal, the Supreme Court confirmed that the taxpayer was liable for withholding taxes on the dividends, and held that: 1) the dividend distribution didn’t qualify for exemption under the EU parent-subsidiary company directive or the DTA with Luxembourg, because the recipient was ...