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.