Denmark: Amended documentation requirements for standard reclaims
Further to our Taxflash T15041, dated 26 August 2015, concerning the suspension by the Danish Tax Authority (SKAT) of all Danish tax reclaims, Clearstream Banking1 would like to inform customers that, effective
SKAT has restarted the payment of refunds provided sufficient supporting documentation is provided with the reclaim request to prove that:
- The claimant has received the Danish dividend;
- The claimant is the beneficial owner of the dividend:
- Danish dividend tax has been withheld; and
- The claimant is liable to pay tax in another country covered by a double taxation agreement at the time the dividend distribution was agreed, if a Double Taxation Treaty (DTT) application.
Impact on customers
In accordance with the amended guidelines from SKAT, when applying for a standard refund of withholding tax on dividends from Danish equities via Clearstream Banking, in addition to the normal reclaim documentation as outlined in the Clearstream Banking Danish Tax Guide, customers are requested to provide the following documentation.
Note: SKAT will review the eligibility of the beneficial owners requesting tax reclaims on a case-by-case basis and may request further documentation. Tax reclaim processing times are subject to delay.
- Evidence of property ownership: This should be provided in the form of purchase receipts of the shares for which the refund is requested. The documentation must be certified with a stamp and signature from the issuing bank.
- Evidence of the received cash dividend: Evidence should be provided in the form of dividend vouchers or Credit Advices, which must include the tax withheld and the account number to which the dividend has been transferred and bank statements from the foreign bank where it appears that the dividend received has been deposited into the cash account of the beneficial owner. Documentation must be provided from the full financial transfer chain, in case the dividend received has been transferred though several intermediaries and must be certified with a stamp and signature from the issuing bank.
- Statement of holdings from the beneficial owner’s own local bank: This statement must show the number of shares held by the beneficial owner on the record date of the dividend payment for which the refund is requested. The documentation must also be certified with a stamp and signature from the issuing bank.
- Power of Attorney for tax reclaim processes follow-up: This Power of Attorney must be issued by the beneficial owner to Clearstream Banking S.A and must be provided in original form as per the reclaim application.
- Loan Agreement: A shareholder loan agreement must be enclosed if the shares from which the dividend has been received have been borrowed under a shareholder loan agreement.
- Other supporting documentation: Any other documentation which may be requested by SKAT in order for them to determine the eligibility of a beneficial owner for the refund request.
Clearstream Banking’s Danish Tax Guide will be updated in due course.
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.