Market Taxation Guide - Denmark
This Market Taxation Guide (Denmark) provides the following details:
- Reference information about all taxes applied at source, through Clearstream Banking and its local depositories, to securities deposited in Clearstream Banking and
- Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.
New and improved tax information and procedures that become available will be included on an ongoing basis.
Scope of the Guide
Except where otherwise specified, the information and procedures described apply to securities deposited by Clearstream Banking with its local depository and will therefore generally apply to domestic securities - securities issued by issuers of Denmark in offerings in Denmark.
Information provided in the Guide
The following information is provided:
- The types of tax applicable at source to securities deposited with Clearstream Banking
- The standard rate of withholding tax on income distributions
- Whether relief at source is available through Clearstream Banking
- Whether a tax refund is available through Clearstream Banking and, if so, what types of refund are available and which beneficial owners are eligible
- The beneficial owners that are eligible to obtain tax relief through Clearstream Banking
- The procedures available to reclaim tax through Clearstream Banking, that includes descriptions of:
- What documentation is required
- Who is required to complete each document;
- How often the documentation must be provided
- Whether the original of a document is required or a copy is sufficient
- What is the statutory deadline for reclaiming withholding tax
- What deadline is in force for the receipt of the documentation
- When the customer may normally expect to receive a reclaimed refund amount.
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.
The following details are specific to the Danish market.
No withholding tax, capital gains tax or stamp duty is levied on interest from Danish debt securities held in Clearstream Banking.
The current standard rate of withholding tax on dividends is 27%.
- A withholding tax rate of 28% was applied to dividend payments made before 1 January 2012.
- A withholding tax rate of 25% was applied to dividend payments declared before 1 January 2001.
Relief at source is not available through Clearstream Banking but a reclaim of withholding tax is available for eligible beneficial owners.
The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate required documentation.
Qualifying U.S. pension funds are subject to a reclaim prerequisite whereby they must be in possession of a “frikort” (free card) to be able to request a full refund of Danish withholding tax.
Residents of Denmark cannot reclaim withholding tax through Clearstream Banking.
No capital gains tax or stamp duty is levied on dividends from Danish equities held in Clearstream Banking.