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Measures List
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Measure Name
Date when measure came into force
Right to deduct payments to capital pensions 2013/01/01
Discount on capital pension scheme 2014/01/01
Inflationary adjustments 2014/01/01
Results 1 - 3 of 3.

Generic Tax Name Personal income tax - Taxation of pension schemes
Tax name in the national language Pensionsbeskatning
Tax name in English Taxation of pension schemes
Member State DK-Denmark
Tax in force since 1971/06/09
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

 

Statutory Notice No 586 of 24th May 2013 (pensionsbeskatningsloven).

In addition to the taxation of pension schemes, the Danish PIT also consists of 'State and municipal tax', 'Tax on employee shares and bonds', as well as 'Labour market contribution', which have their own seperate tax forms.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The State and municipalities.

 
Geographical Scope

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments


Comments

The owner of the scheme, or appointed beneficiaries, such as spouses and heirs.

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

Endowments from certain pension schemes. The relevant schemes and some of the relevant provisions are as follows:

  • Current endowment pension schemes. These include inter alia civil service pensions and pensions paid by pension funds as well as annuities, survivorship annuities and child pension insurance. In 2009 by general, payments to these schemes were fully deductible from taxable income, whilst the benefits received are liable to income tax. But from 2010 due to the new ‘Spring Package’ tax reform contributions to annuities distributed over a fixed period are only deductible from taxable income up to DKK 100,000. This was changed again in 2012, and it still stands in 2015, so contributions are deductible from taxable income up to DKK 51,700 (2015).
  • Instalment pension schemes. Pensions under these schemes are paid out in instalments. As of 2012 (and it still stands in 2015) contributions are only fully deductible under a threshold of DKK 51,700 (2015), provided that the instalments are disbursed over a period of not less than 10 years. The personal income tax is levied on the annual instalments (see the personal income tax).
  • Capital pension schemes (lump sum pension schemes). From 2013 there was an abolition of the fully deductible contributions. With the revised capital pension schemes, the annual contributions is set to a fixed maximum amount of DKK 28,600 (2015). The fixed maximum amount in 2012 (27,600) corresponded to the old fixed maximum amount of  DKK 46,000 in 2012 adjusted with the postponed tax of 40% on the date of the cash payment. In 2015 the duty of payout of capital pensions were set to 37.3 %. At the same it is made possible to move forward the payment of the duty on the existing capital pensions. This makes it possible for people to convert to the revised capital pension scheme with a tax savings of ca. 2.7 %.

The legislation contains a number of special cases regarding the regulation of deductible contributions from self-employed, majority shareholders and athletes.

If one of the mentioned schemes is cancelled prematurely or pledged as security for loans, an aproximately 60% levy becomes payable.

The age limit for when the capital pension scheme shall be disbursed is increased by 5 years.

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

 See ‘Basis of assessment'.

 

 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From   EUR/Natcur
To   EUR/Natcur
Rate:
Comments

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends:
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable
Comments


Comments
 
Tax due date

 
Tax collector

Tax must normally be paid by the company that manages the schemes.

 
Special features

The significant increase in revenue in 2009 can be explained by withdrawals from Special Savings (SP) pension scheme. In order to mitigate the crisis the disbursement of the SP-savings was made an option in the spring of 2009. Following very large withdrawals of the SP it was later in 2009 decided to abolish this savings scheme.  

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51ae + d51ah

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 10,010.97 DKK 0.53
2011 9,889.45 DKK 0.54
2010 10,385.76 DKK 0.58
2009 29,349.92 DKK 1.71
2008 11,170.58 DKK 0.62
2007 9,504.27 DKK 0.55
2006 8,219.34 DKK 0.49
2005 7,783.87 DKK 0.49
2004 7,531.70 DKK 0.50
2003 7,259.30 DKK 0.51
2002 7,099.00 DKK 0.50
2001 6,729.00 DKK 0.49
2000 7,329.90 DKK 0.55

Comments