Denmark proposes new withholding tax regime for dividends

Executive summary

On 18 May 2020, the Danish Government published an agreement (the Agreement) between the Danish Ministry of Taxation and Finance Denmark (the Danish business association for the banking industry) on a new withholding tax on dividends regime. Under the proposed regime, dividend withholding tax (WHT) would be based on relief at source principles with custodian banks playing a central role and taking on liability for faulty withholding.

Detailed discussion

In August 2015, the Da…