Declaration of tax

As a rule, no tax is to be declared on disbursements from an old-age savings scheme and an old-age insurance scheme if the disbursement is covered by section 25 A of the Pension Tax Act.

If the disbursement is not covered by section 25 A of the Pension Tax Act, tax must be declared on the disbursement.

The forms are used by pension providers to declare and settle tax for old-age insurance schemes, old-age savings schemes or supplementary lump sums. The forms must remain with the pension provider.

Form P32 (07.084)

The form is used by pension providers on full or partial termination of old-age insurance schemes, old-age savings schemes or supplementary lump sums, and if the conditions laid down in section 25 A that no tax is payable on the disbursement have not been met, and a tax of 20 per cent is payable.

Form P32U (07.084U)

The form is used by pension providers on full or partial termination of old-age insurance schemes, old-age savings schemes or supplementary lump sums, and if the conditions laid down in section 25 A that no tax is payable on the disbursement have not been met, and a tax of 40 or 60 per cent is payable.

The pension provider must use form P32 for the part of the disbursement on which 20 per cent tax is payable, and form P32U for the part of the disbursement on which 40 or 60 per cent tax is payable.

If, when assessing the taxable income, the holder has had deductions abroad for the contributions, or the contributions have been made by an employer and are not included in the assessment of the taxable income at the time of contributions, a tax of 40 or 60 per cent is payable.

Only for contributions that have been deductible or exempted, a tax of 40 or 60 per cent is payable. This appears from section 28(2) of the Pension Tax Act.

Therefore, part of a pension scheme can, on disbursement, be subject to, for example, a tax of 20 per cent, whereas the rest is subject to a tax rate of 40 or 60 per cent.

Box 1 - Notifier

State the name, postal address, telephone number and contact person of the pension provider where the pension scheme is registered at the time when the tax liability arises.

Box 1 - Telephone number

State the direct telephone number of the pension provider’s contact person.

Box 2 - Recipient

The recipient is the Tax Agency.

Box 3 - CVR number or SE number

State the bank’s CVR number or SE number. The number must be registered with the Danish Business Authority for duty to declare pension tax and must be numerical with 8 digits.

The SE number may also be from a foreign pension provider approved under section 15C of the Pension Tax Act.

The date of establishment for foreign pensions cannot be earlier than 1 January 2006.

In case of missing declaration or errors, error number 3071 is set up - SE number unknown or incorrect.

Box 3A - Pension scheme number

State the pension scheme number approved (in Denmark). The box is only relevant for pension providers registered in an EU/EEA member state other than Denmark and which are approved under section 15C of the Pension Tax Act.

The date of establishment for foreign pension schemes cannot be earlier than 1 January 2006. In case of errors, error number 3220 is set up - Date of establishment for foreign pension schemes cannot be earlier than 1 January 2006.

If the approved foreign pension provider does not declare the number of the pension scheme, error number 3254 is set up - Foreign business - pension scheme number missing.

Box 4 - Name and address of the taxable person

State the holder’s name and address.

Is only to be completed if there is no civil registration number for the holder.

If the holder is deceased, a distinction must be made between the beneficiaries of the holder and the persons named as beneficiaries of the pension scheme.

If the holder is deceased, ‘Estate after’ and the deceased’s name and latest address are stated.

Beneficiaries are entitled to disbursement and are independent taxable persons. This appears from section 38(1) of the Pension Tax Act. Therefore, a tax calculation for each beneficiary must be made. This is important in relation to the rounding-off rules.

Box 5 - Civil registration number

State the holder’s civil registration number (CPR number), which must contain 10 digits (numerical). In the event of death, the civil registration number of the deceased is stated - not the civil registration numbers of the beneficiaries.

In case of missing statement or errors, error number 3013 is set up - CPR number incorrect or missing.

If the holder does not have a civil registration number, the form must be sent manually to the Tax Agency. Sign in with MitID and write to US. State the subject ‘Disbursement of pension - Pension Tax Act manual’.

Box 6 - Policy/membership/account number

State the policy, membership, registration or account number.

If it is a positive change in relation to previous declarations submitted, state ‘RET’ (correct) in this box in front of the policy, membership, registration or account number.

Negative corrections and a request for a refund of tax must be sent separately to the Tax Agency via Customer overview under the subject ‘Refund of tax’.

In case of missing statement or errors, error number 3002 is set up - Account number or policy number missing.

Box 7 - Date of establishment (DD MM YYYY)

State the date of establishment of the pension scheme, which must be valid and earlier than or equal to today’s date.

• Pension schemes with insurance companies: The date on which the final agreement about the scheme was concluded. The final agreement is not concluded until an agreement between the policyholder and the pension provider has been finally concluded or, for employer-administered schemes, when the agreements between the insured, the policyholder and the pension provider have been finally concluded.
• Pension schemes with banks: The date on which the first contribution to the scheme was made according to the agreement concluded.
• Transferred terminated pension scheme: The original date of establishment, if the terminated pension scheme has been transferred from another pension scheme.
  The date must always be stated numerically in the DD MM YYYY format.

In case of missing statement or errors, set up the following error numbers:

• Error number 3014 - Date of establishment is not valid; or
• Error number 3016 - Date of establishment is not earlier than or equal to today’s date.

The date of establishment for foreign pension schemes cannot be earlier than 1 January 2006. In case of errors, error number 3229 is set up - Date of establishment for foreign pension schemes cannot be earlier than 1 January 2006.

Box 8 - Date of disbursement (DD MM YYYY)

State the date of the disbursement or the transfer to a new old-age pension scheme or where knowledge of the tax liability arises due to age or the date on which it became known that the tax liability had arisen. As a general rule, the tax liability arises on the date of disbursement.

The date must be indicated numerically in the DD MM YYYY format. The date must be valid and later than the date of establishment (box 7) and later than 31 December 1988. The date must be earlier than or equal to today’s date plus 7 days.

In case of missing statement or errors, set up one of the following errors:

• Error 3003 Date of disbursement must be later than the date of establishment;
• Error 3065 Date of disbursement must be later than 31 December 1988;
• Error 3017 Disbursement date error; or
• Error 3124 Date of disbursement must not be later than today’s date plus 7 days.

Transaction

If the tax liability is due to a transaction or change in contravention of the provisions of the Pension Tax Act, the tax liability arises on the date on which the transaction or the change was agreed with binding effect. The tax must be settled one month at the latest after the pension provider has been informed of the transaction or the change. In this case, the date of awareness must be stated.

Box 9 (1) - Personal pension scheme (tax code 33)

Please tick here if the pension scheme is a personal pension scheme.

Only the status of the pension scheme at the time the tax liability arises is decisive.

Box 9 (2) - Employer-administered pension scheme (tax code 45)

Please tick here if the pension scheme is an employer-administered pension scheme.

Only the status of the pension scheme at the time the tax liability arises is decisive.

If a holder has several pension schemes, e.g. both a personal and an employer-administered pension scheme, the schemes must be declared on separate forms.

In case of missing statement or errors, error number 3004 is set up - Pension scheme type must be declared as 1 or 2.

Box 11: 20 per cent tax liability

The tax liability has arisen due to one of the following three possibilities. Please tick the relevant box.

Case 1

Disbursement of an old-age pension scheme or an old-age insurance scheme covered by section 28(2) para (1) of the Pension Tax Act.

Case 2

Disbursement of a supplementary lump sum covered by section 29(1) para (6) and (7) of the Pension Tax Act.

Case 3

Disposal of an old-age insurance scheme, an old-age savings scheme or a supplementary lump sum under section 30(1) para (15) and (16) of the Pension Tax Act.

Box 12 - Taxable value

State the taxable value of the pension scheme after the tax on the yields from the pension has been finally settled.

Box 13 - Tax calculation

Before the tax calculation, round down the taxable amount to be nearest amount in Danish kroner (DKK) divisible by 100. Subsequently, a tax of 20 per cent is payable.

Box 14 - Amount for settlement

State the amount from box 13.

Box 15 - The notification replaces the previous form

Only fill in this field if the form previously submitted is incomplete or incorrect. The date of disbursement and tax payable concerning the form previously submitted must be stated here.  

For 40 and 60 per cent tax, form P32U must be used.

If 40 or 60 per cent tax is payable, form P32U must be used.

Only disbursement corresponding to contributions that have been deductible or exempted abroad are subject to a tax liability of 40 or 60 per cent.

Therefore, part of a pension scheme for disbursement can be subject to, for example, a tax of 20 per cent for part of the disbursement and 60 per cent for the remaining part.

Form P32 must be used for the part of the disbursement on which 20 per cent tax is payable.

Form P32U must be used for the part of the pension scheme on which 40 or 60 per cent tax is payable.