Form descriptions - Standard refund - Danish equities

05.10.2017

The use of the following forms is explained in relation to Danish tax procedures:

  • Claim of Tax Treaty Benefits;
  • Place of residence statement (Form 02.051 for companies or Form 02.050 for private individuals); or
  • Certificate of Residence; - if form 02.051/02.50 are not provided
  • List of beneficial owner details (via electronic upload).
  • Form 6166 U.S. Residency Certification Letter;
  • Power of Attorney for tax reclaim processes follow-up;
  • Letter of Request to Clearstream Banking for Reclaim of Danish Withholding Tax;
  • Proof of Tax Exemption;
  • Credit advice

Claim of Tax Treaty Benefits

For the U.S. pension fund to be able to request a full refund of Danish withholding tax, it must submit a Claim of Tax Treaty Benefits directly to the Danish Tax Authorities to obtain a free card (“frikort”).On this form, the U.S. pension fund certifies that it meets all the conditions as specified in the DTT.

Note: An Internal Revenue Service (IRS) Form 6166, U.S. Residency Certification Letter is also required, confirming that the U.S. pension fund has filed a U.S. income tax return.

Who completes it?

Beneficial owner or customer under Power of Attorney.

How often is it provided?

 Per reclaim application.

When is it provided?

At the latest two months before the statutory or DTT deadline, whichever is applicable.

Copy or original?

Original required.

Place of residence statement

A Place of residence statement, issued by the beneficial owner’s tax authorities, is used to confirm the place of residence for tax purposes of a private individual (form 02.050) or a company (form 02.051) in Denmark or outside Denmark.

Who completes it?

 Beneficial owner’s tax authorities.

How often is it provided?

The form is considered as valid for the period indicated in the fields “From (date)” and “Until (date, if known), which must be completed according to the following rules:
From (date):

  • Individuals
    The date as of when the individual was first resident or moved to its country of residence;
  • Companies
    The date when the company was first established or moved to the country of residence.

Until (date, if known):

Individuals and companies
The date on which the beneficial owner left the country of residence.
If the beneficial owner is still resident in the relevant country of residence, then the field “Until (date, if known)” should be left blank. The validity end date for such forms will instead be the date when the form is issued (dated) by foreign tax authorities.

The form will consequently only be considered valid for the dividend payments paid during this period.

When is it provided?

 At the latest two months before the statutory or DTT deadline, whichever is applicable.

Copy or original?

Original required.

Certificate of Residence

A Certificate of Residence, issued by the beneficial owner’s tax authorities, giving the beneficial owner’s full name and address and Tax ID and confirming that the beneficial owner is liable to tax in that country is also acceptable, if the COR includes the same information as the Forms 02.050 and 02.051.

Important note:
For residents of countries that have an international treaty or convention with the Danish Tax Authorities other than a Double Taxation Treaty (DTT) - for example, France or Spain - the "Certification of the competent authority" section of the Claim to Relief from Danish Dividend Tax form for certifying the beneficial owner's residence is not valid. Therefore, for these beneficial owners, a separate Certificate of Residence is mandatory in addition to the reclaim form.
Residents of countries that have a DTT with Denmark have the option to submit a Certificate of Residence in addition to the Claim to Relief from Danish Dividend Tax form in which the "Certification of the competent authority" section is not completed.

How many are provided?

One per Beneficial owner.

Who completes it?

Beneficial owner’s tax authorities.

How often is it provided?

(Standard refund) once per tax year in which the dividend payment was made. One Certificate of Residence is available for all standard refund applications related to payments that were made in the respective year, even if respective refunds are applied for in different years.

When is it provided?

 At the latest two months before the statutory deadline.

Copy or original?

(Standard refund) for the first standard refund application for the respective tax year: an original is required; otherwise, a copy from the beneficial owner, referencing the original already submitted, is accepted.

Form 6166 U.S. Residency Certification Letter

Beneficial owners who are U.S. residents must provide this letter to confirm that they have filed a U.S. income tax return. When a beneficial owner is paying taxes both in the U.S.A. and in a country with which the U.S.A. has a treaty, a certification of U.S. taxes is required in order to obtain any treaty benefits (such as reduced rates of withholding tax on interest).

The form must include the name and U.S. address of the beneficial owner and the tax year being certified.

The U.S. Internal Revenue Service (IRS) have a mandatory procedure for requesting a Form 6166, whereby the beneficial owner must submit a Form 8802, Application for United States Residency Certification.

Form 8802 can be downloaded from the IRS web site at:

Who completes it?

U.S. Internal Revenue Service.

How often is it provided?

Annually.

When is it provided?

At the latest two months before  the statutory deadline.

Copy or original?

Original required

Power of Attorney for tax reclaim processes follow-up

A Power of Attorney must be issued by the beneficial owner to Clearstream Banking in order to grant Clearstream Banking the authority to process and follow up.

Who completes it?

Beneficial owner.

How often is it provided?

Once in original and will hereafter cover future reclaim request for the applicable beneficial owner.

When is it provided?

At the latest two months before the statutory deadline.

Copy or original?

Original.

Letter of Request to Clearstream Banking for Reclaim of Danish Withholding Tax

This authorises Clearstream Banking to reclaim withholding tax from the Danish Tax Authorities on the customer's behalf.

Who completes it?

Customer.

How often is it provided?

Per reclaim application.

When is it provided?

At the latest two months before the statutory or DTT deadline, whichever is applicable.

Copy or original?

Original required.

Request for Reclaim as a Foreign Government or International Organisation

A letter to the Danish Tax Authorities requesting a full refund of withholding tax is required.

Who completes it?

Beneficial owner or customer under Power of Attorney.

How often is it provided?

Per reclaim application.

Proof of Tax Exemption

The Danish Tax Authorities’ confirmation that it recognises the beneficial owner as an exempt international organisation or foreign government.

Who completes it?

Danish Tax Authorities..

How often is it provided?

Per reclaim application.

When is it provided?

At the latest two months before the statutory deadline.

Copy or original?

Copy is sufficient.

Credit advice

Identifies dividend payment details including the security type, gross amount of payment, date of payment and amount of tax withheld. The credit advice must reconcile with the information in the refund form. If the beneficial owner is the customer's client, the credit advice from the customer to the beneficial owner must be provided.

Who completes it?

Financial institution paying the beneficial owner.

How often is it provided?

Per reclaim application.

When is it provided?

At the latest two months before the statutory or DTT deadline, whichever is applicable.

Copy or original?

Original required.