Grænser & Satser

Overview of tax-advantaged pension schemes

Give yourself an overview of tax-advantaged pension plans and learn how to use it

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Oversigt

We have shown below an overview of limits on deductive/exclusion rights for savings on tax-advantaged pension plans. The overview is valid for the income year 2024.

1. Pension plans with deductions and tax on disbursement.


	Deduction/exemption right *)	Taxation of the return	Taxation on withdrawal
Lifetime pension savings	No limit of amount	15.3 %	Tax/duty

Life-long annuity is paid as a lump sum	Deductions of a maximum of DKK 58,100 are distributed over 10 years	15.3 %	Tax/duty
Life-long annuity is paid every year over 10 years	Deduction of a maximum of DKK 58,100 in the year due	15.3 %	Tax/duty

Installment pension/installment insurance and lapse annuity	Max. 63,100 kr.	15.3 %	Tax/duty

Extra deduction only for 2024	Value = 12% of max. DKK 80,600 x 0.12 = DKK 9,672.
More than 15 years to retirement age	Up to DKK 80,600	15.3 %	Tax/duty

Extra deduction only for 2024	Value = 32% af max DKK. 80,600 = DKK 25,792.
15 years or less until retirement age	Up to DKK 80,600	15.3 %	Tax/duty

*NB! Deduction assumes full tax liability to DK. The right of exclusion presupposes that these are employer-management arrangements in which wage income is taxable to Denmark. No opt-out is granted for AM contributions (e.g. for 2024:68,587 - 5,487 = 63,100)

2. Age savings without deduction and without tax on disbursement

Below are shown pension schemes in which the deposit is made from taxed funds.

Deduction	No deduction and payment up to	Taxation of the returns	Taxation at payout
More than 7 years until retirement age	kr 9,100	15.3%	No tax/fee
7 years or less to retirement age	kr. 58,900	15.3%	No tax/fee

3. § 53A Schemes

These schemes are also subject to the payment being made from taxed funds and typically include foreign pension schemes which meet the conditions of section 53A of the PBL. In practice, these schemes are mostly used for posting and posting.

Scheme	Deduction/Right to Set Off	Taxation of the returns	Taxation at payout
Other arrangements; Including health and accident insurance and uncovered director schemes	No deductions/exemption right **	Up to 42% and inventory taxation	No tax/fee

**NB! No taxation on payment unless there has been a right of deduction/exclusion abroad

SkatteInform does not accept responsibility for any dispositions that may be made on the basis of this newsletter without prior advice. We also do not accept responsibility for errors and omissions.

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