Denmark Tax Agency Clarifies Tax Treatment of Payments From U.S. Pension Regime

The Danish Customs and Tax Administration May 5 posted Tax Council Binding Answer No. SKM2026.219.SR, clarifying the tax treatment of payments from a U.S. pension regime. The taxpayer, a Danish tax resident employed at a U.S. university, received pension payments and sought clarification on the taxation of the payments in Denmark, the application of relief under the 1999 Denmark-U.S. DTA, and the treatment of the specified pension returns. The Tax Agency held that the regime should be taxed under the State Tax Act. Upon review, the Tax Council found that: 1) the regime didn’t qualify as a pension fund due ...