When a bank or pension provider is registered, it undertakes to obtain a declaration from the client. The declaration must be signed by the client who thereby accepts being taxed in Denmark on disbursements from the pension plan. The form 07.056 (07.056E, English version) is available at www.skat.dk under Virksomhed - Blanketter - 07 Skat; Gaveafgifter og pension.

Furthermore, the bank or pension provider undertakes to withhold and pay any income tax (A tax), tax penalty and tax on yields from pension assets in accordance with the same rules as Danish banks and pension providers.

The bank or pension provider must, on its own initiative, make a number of declarations. The rules, deadlines and guidelines applying to such declarations are described below.

Moreover, the bank or pension provider undertakes to inform SKAT about:

  • changes in ownership
  • pledging of the plan
  • changes in beneficiaries named by the client
  • any other factors which may mean that the plan no longer complies with the Danish pension rules.

If the bank or pension provider does not fulfil its obligations, SKAT may withdraw its approval to the effect that clients are no longer entitled to a tax exemption/deduction against their taxable income in Denmark for the contributions to their pension plans with the bank or pension provider.