Introduction

This guide covers forms 07.067 EN, 07.067 K EN, 07.070 EN and 07.070 K EN.

The guide covers 4 different forms and consequently does not follow the same pattern as the forms. If an overview of the logic behind the calculations is required, reference is therefore made to the individual forms.

In its present form, the guide only contains a description of what the content of the individual field numbers must be. The field numbers in the guide are listed in numerical order and therefore not in the same order as in the online forms.

Next to each field number in the guide, it is indicated on which forms the field number is used.

Tax liability, statutory basis and legal guide

The determination under section 21 of PAL must comprise the asset returns etc. which can be attributed to the relevant income year, see section 11 of PAL.

Further information about the rules in PAL is available in section CG of the Danish Tax Agency's (Skattestyrelsen) legal guide Den juridiske vejledning. You can see the guide at www.skat.dk/juridiskvejledning. Please note that the guide is only available in Danish.

References to acts on forms and in this guide concern:

    • Danish Pension Investment Return Tax Act (Pensionsafkastbeskatningsloven (PAL)), see Consolidation Act no. 1126 of 10 October 2014, as amended.
    • Danish Pension Tax Act (Pensionsbeskatningsloven (PBL)), see Consolidation Act no. 1088 of 03 September 2015, as amended.
    • Danish Executive Order no. 1138 of 22 October 2014 on Certain Rules in the Danish Pension Investment Return Tax Act (Bekendtgørelse om visse regler i pensionsafkastbeskatningsloven), as amended through order no. 522 of 24 May 2016

This guide is a declaration guide, which means that it is not an exhaustive description of what should be included in each field. These are only summaries that set out in general terms which types of return, loss etc. are to be entered in each field, including the prefix to be used etc. For more information on the declaration of specific amounts, please refer to the above rules and guides.

E-tax for businesses

In E-tax for businesses (the Danish Tax Agency's self-service facility for businesses - TastSelv Erhverv), the online form can be found in the dark blue bar at the top of the screen under 'Øvrige indberetninger' (Other declarations). Click 'Pension' on the far left of the screen, select 'Pensionsafkast (PAL)' (Pension investment returns (PAL)) and then select either 'Indberet' (Declare) or 'Korrektion' (Correction).

When the declaration/correction has been completed and accepted in E-tax (TastSelv), an OCR line will automatically be created on the receipt. The OCR line must be used for payment if the declaration/correction results in outstanding PAL tax. Interest is calculated until and including the day before the date of payment in accordance with the rule set out in section 21(1), second sentence, of PAL in case of an ordinary declaration. In case of a correction declaration, interest must be calculated in accordance with section 27(5) of PAL.

If the declaration/correction results in disbursable PAL tax, no further action is needed once the declaration/correction has been accepted. The Tax Agency will calculate the interest and disburse the overpaid PAL tax including interest.

Please note that it is not currently possible to submit declarations where PAL tax is payable via E-tax. These must be submitted on a paper form to the Tax Agency which will then enter them. The paper form may be submitted as a scanned copy to the below email address. The same applies if interest is to be declared on the special negative tax account, see section 17(6) of PAL.

The sum amounts may only be rounded off to whole Danish kroner (DKK) when the online form is being completed, and no prefixes may be entered in amount fields where prefixes are already printed.

If, as described, a manual declaration is submitted, it must be sent to: ekapital@sktst.dk with ‘Manual PAL declaration’ in the subject line, or to the Tax Agency at the address:

Skattestyrelsen
Nykøbingvej 76
Bygning 45
4990 Sakskøbing
Denmark

Payment details

The calculated tax must be transferred via OCR line to account no.: 0216 4069064507. For foreign schemes, the tax must be transferred via IBAN: DK1402164069064507 and BIC/SWIFT code: DABADKKK.

The declaration and the tax payment must be received by the Danish Tax Agency no later than on 31 May of the year following the income year, see, however, section 26 of PAL.

Correction declarations

In E-tax for businesses, the online form can be found under the menu item ‘Øvrige Indberetninger/pension/pensionafkast (PAL)/korrektion’ (Other declarations/pension/pension investment returns (PAL)/correction).

E-tax is open for correction of the declaration in the following periods: 1 January up to and including 1 February, 1 April up to and including 1 May, 1 July up to and including 1 August and 1 October up to and including 1 November.

If it is only possible to declare using a paper form as described above, the form must be received by the Tax Agency no later than on the above dates. Please note that if a correction results in disbursable PAL tax, the correction must be submitted on a paper form, as the system does not currently allow the reporting of negative declarations. The Tax Agency will input the details from the form and disburse the overpaid PAL tax including interest.

When the correction declaration is accepted in E-tax, an OCR line will automatically be created on the receipt. The OCR line must be used for payment if the correction results in outstanding PAL tax. Interest must be calculated until and including the day before the date of payment in accordance with the rule set out in section 27(5) of PAL as from 20 February of the year following the income year and until payment is made.  

If the correction results in disbursable PAL tax, the declaring party does not have to calculate interest, as the Tax Agency will do this when disbursing the amount.

The legal basis for making correction declarations can be found in section 9 of Danish Executive Order no. 1138 of 22.10.2014 on Certain Rules in the Danish Pension Investment Return Tax Act.

Always check whether a correction declaration will give rise to a consequential correction for subsequent income years.

Auditor's statement

The pension provider’s auditor must submit a signed statement indicating that the final determination under section 21 of PAL has been audited in accordance with the rules set out in part 10 of Danish Executive Order no. 1138 of 22 October 2014, as amended by Executive Order no. 522 of 24 May 2018. The statement must be prepared in accordance with Danish Executive Order no. 736 of 17 June 2016 of the Danish Ministry of Business and Growth on Statements Made by State-Authorised and Registered Public Accountants (Erklæringsbekendtgørelsen). Reservations and/or supplementary information must appear from the auditor’s statement. Any periodical statements may be endorsed by the internal auditor, if any. The auditor’s statement must be submitted to the Tax Agency no later than on 1 July of the year following the income year, see section 28 of the Executive Order.

Questions

Questions concerning the determination of the tax base, including the calculation of the final tax on returns from pension scheme assets, should be directed to the Tax Agency on +45 72 22 18 18.