Denmark Tax Agency Clarifies Tax Treatment of Collectively Agreed Voluntary Savings Regime in Pension Fund

The Danish Customs and Tax Administration April 30 issued Tax Council Binding Answer No. SKM2026.210.SR, clarifying the tax treatment of a voluntary savings regime in a pension fund. The taxpayer, a Danish pension fund, allowed members to allocate excess employer pension contributions to a voluntary savings account funded with taxed income and no deduction rights. The taxpayer treated the arrangement as a qualifying pension fund regime with tax-free withdrawals and returns, taxed as capital income, and the Tax Agency agreed. Upon review, the Tax Council found that: 1) the arrangement qualified as a pension fund regime under the Pension Taxation ...