The statute of limitations rules in the Danish Tax Administration Act (SFL) set out how long the Danish Tax Agency and the taxpayer or business have to change a tax assessment – that is, how long a given tax year can be reopened, increased or reduced.

The key provisions are SFL section 26 on ordinary reopening and SFL section 27 on extraordinary reopening. In addition, SFL section 20 (time limits for draft tax decisions) and SFL section 31 (time limits for notices of changes to VAT and duties) apply, and there are also special rules for, for example, property assessments.

The main rule in SFL section 26 is that the Danish Tax Agency can send a notice of an ordinary reopening no later than 1 May in the fourth year after the end of the income year, and the assessment must be made no later than 1 August in the fourth income year.

Example: Income year 2022 → deadline 1 May 2026.

The taxpayer can request ordinary reopening no later than 1 May in the fourth year after the end of the income year, cf. section 26(2).

The tax authorities have 3 extra months to make the changed tax assessment, but they must send the notice within the same deadline as the taxpayer has for ordinary reopening.

The short time limit for notice of a changed tax assessment in SFL section 26(1), 5th sentence is 30 June in the second calendar year after the end of the income year. The Danish Tax Agency must make the decision no later than 30 October in the same year.

The short time limit applies in particular to taxpayers with simple financial affairs who receive an automatic annual tax statement instead of a full tax return.

The taxpayer is not covered by the short time limit if the change in a tax assessment is based on a matter, and an entirely similar matter justifies reopening of a tax assessment for an earlier income year.

If it is important for the taxpayer’s ability to safeguard their interests that the deadline is extended, the Danish Tax Agency must grant a reasonable extension upon request.

Examples of taxpayers typically covered by the short time limit include employees, pensioners, students and employees only with share trading that is automatically reported to the Danish Tax Agency – provided they do not run a business or have foreign income or wealth.

When the ordinary statute of limitations under SFL section 26 has expired, situations may arise where an income year can be reopened extraordinarily.

The taxpayer can request reopening of the tax assessment after expiry of the ordinary time limit in particular in the following situations:

• Special circumstances for the taxpayer (SFL section 27(1)(8))
• Change of practice after a court decision or published change of practice
• Decisions from foreign tax authorities that affect Danish taxation

The concept of “special circumstances” must be interpreted very narrowly by the Danish Tax Agency. There must be external circumstances that the taxpayer has not been able to influence.

Examples of conditions for extraordinary reopening include:

• The basis on which the annual tax statement was made has changed
• Your or your spouse’s tax assessment has been changed for a previous income year
• A foreign tax authority has made a decision that affects the taxation
• Existing practice has been overturned by a court or the Danish Tax Council
• The Danish Tax Council has changed a decision of a tax appeals board
• The transfer price for an asset has been changed
• Other special circumstances, for example long-term illness or serious official errors

In cases of gross negligence, the tax authorities can reopen the tax assessment after expiry of the ordinary time limit if the taxpayer has acted with gross negligence. This provision is used very frequently by the tax authorities, and taxpayers should be aware of this.

In very serious cases – for example fraud, gross negligence or intent – reopening can in practice reach many years back, but always subject to the separate rules on limitation of the tax claim itself.

Even with extraordinary reopening, both the Danish Tax Agency and the taxpayer must react within 6 months from the time they became aware of the matter:

• The Danish Tax Agency must send notice within 6 months after it has become aware of the matter (section 27(2)).
• The taxpayer must request reopening within 6 months after becoming aware of the matter (section 27(2), 2nd sentence), unless there are special circumstances that justify a later request.

As a starting point both the taxpayer and the Danish Tax Agency must react by 1 May in the fourth year. However, special rules apply for simplified annual statements and for VAT and duties.

For extraordinary reopening, the reaction must take place no later than 6 months from the time of knowledge. For the taxpayer there is an additional possibility if special circumstances speak in favour of reopening even after 6 months.

Yes. For controlled transactions covered by the Danish Tax Assessment Act section 2 (transfer pricing), the Danish Tax Agency can give notice of a change to the tax assessment no later than 1 May in the sixth year after the end of the income year.

This applies, for example, to transfers of assets between a majority shareholder and his or her company, including disguised dividends.

If the Danish Tax Agency wants to increase your tax, it must send a draft decision (proposal for change) no later than 1 May in the fourth year, and it must then make the final decision no later than 1 August in the same year, cf. section 26(1).

You must request reopening within 6 months after you have become aware of the matter that justifies reopening, cf. section 27(2), unless there are special circumstances that speak in favour of a later request.

Only in very special cases – for example if the taxpayer is guilty of fraud, gross negligence or has acted with intent. There is no fixed maximum time limit, but the request must be made within a reasonable time after knowledge and within the limitation period for the tax claim itself.

It is when you or the tax authorities actually become aware of the circumstances that justify reopening.

No, you only need to send documentation if the Danish Tax Agency asks for it. In practice, however, it is often an advantage to enclose relevant documentation from the start.

If you have a tax case, you should always consider the statute of limitations rules in the Danish Tax Administration Act. The rules are technical and formalistic, and missing a deadline can mean that an otherwise correct claim cannot be pursued.

You should therefore consider seeking advice on statute of limitations and time limits in tax cases.