The Danish Ministry of Taxation has announced plans for the introduction of a new withholding tax procedure for dividends that will effectively end the current refund practice. The new planned procedure is part of efforts to combat fraud.
Under the current procedure, dividends are generally subject to withholding at a rate of 27% and a refund must be requested for the difference between the withholding rate and a reduced rate under an applicable tax treaty. Refund request also required for …