If you are a researcher or a highly paid employee and are covered by the special tax scheme for researchers and highly paid employees (Section 48E of the Danish Tax at Source Act), your salary will be subject to Danish gross tax with limited tax deduction and a low tax rate instead of the regular Danish taxation. Therefore, your pension plan will be established as a plan without deduction, which is an advantage as you pay reduced tax on your salary and tax deduction for your payments in Denmark will thus be of limited value to you.

Please forward the declaration on your foreign tax relations as soon as possible
According to the international rules on exchange of information about financial accounts (the Common Reporting Standard and Foreign Account Tax Compliance Act), you need to provide information about your foreign tax relations before we can establish a pension plan without Danish tax deduction. Therefore, we kindly ask that you complete the declaration as soon as possible through pfa.dk or by ordinary post to PFA Pension, Sundkrogsgade 4, 2100 Copenhagen, Denmark.

Complete the declaration on your foreign tax relations

Your pension plan without Danish tax deduction will be established when PFA receives the declaration on your foreign tax relations, and, subsequently, you have the possibility of getting advice on your entire pension plan. If PFA does not receive the declaration on your tax relations within six months, you will get a deductible plan with retroactive effect from the time of your employment. 

What happens when your gross taxation ceases?
When your gross taxation ceases and you become subject to the regular Danish regulations, PFA will be notified by Novo Nordisk after which your pension payments will be made to a tax deductible pension plan.

Inpatriate employees will, as a rule, get a tax deductible plan with Danish tax deduction for the pension payments. You can choose to change your pension plan to a pension plan without Danish tax deduction.

If you want to have as much of your salary as possible paid out while working in Denmark, we recommend that you choose a pension plan with tax deduction. However, please be aware that if you want to have your pension plan paid out when you leave Denmark, your savings plan will be subject to a flat-rate tax of 60 per cent.

If you want to have your pension plan paid out when you leave Denmark, we recommend that you choose a pension plan without tax deduction. Your net salary will be lower as your pension payment will not be tax deductible, which means that your pension payment will be subject to tax.

Please forward the agreement on pension plan without tax deduction as soon as possible
If you want a pension plan without tax deduction in Denmark, PFA must receive a signed agreement on establishment of the pension plan no later than on the last weekday of the month your employment began. Forwarding the agreement in time ensures that the first pension payment will be made to your pension plan without Danish tax deduction. This way, you avoid getting a deductible plan that cannot subsequently be merged with your pension plan without tax deduction. 

According to the international rules on exchange of information about financial accounts (the Common Reporting Standard and Foreign Account Tax Compliance Act), you need to provide information about your foreign tax relations before we can establish a pension plan without Danish tax deduction. If you want a pension plan without Danish tax deduction, we therefore kindly ask that you forward the signed agreement as soon as possible through pfa.dk or by ordinary post to PFA Pension, Sundkrogsgade 4, 2100 Copenhagen, Denmark.
 
Complete the agreement on establishment of pension plan without Danish tax deduction 
        

Your pension plan without Danish tax deduction will be established when PFA receives the declaration on your foreign tax relations. Subsequently, you will have the possibility of getting advice on your entire pension plan.

If you are a frontier worker and, for example, live in Sweden, you will, as a rule, get a tax deductible pension plan with Danish tax deduction for the pension payments. You can choose to change your plan to a pension plan without tax deduction, where the payouts are tax-free in Denmark as the payments do not qualify for tax deduction in Denmark.

PFA recommends that you get a deductible plan if you live in Sweden and are liable to pay Danish tax on your Danish work income, so that you can use the tax deduction for your pension payments.

If, down the road, you wish to cancel your pension plan and have the money paid out because your employment in Denmark ends, PFA recommends that you instead get a pension plan without Danish tax deduction.        

Please forward the agreement on pension plan without tax deduction as soon as possible
If you want a pension plan without tax deduction, PFA must receive a signed agreement on establishment of the pension plan no later than on the last weekday of the month your employment began. Forwarding the agreement in time ensures that the first pension payment will be made to your pension plan without Danish tax deduction. This way, you avoid getting a deductible plan that cannot subsequently be merged with your pension plan without tax deduction.

If you want a pension plan without Danish tax deduction, you must, according to the international rules on exchange of financial accounts (the Common Reporting Standard and Foreign Account Tax Compliance Act), provide information about your foreign tax relations. If you want a pension plan without Danish tax deduction, we therefore kindly ask that you forward the signed agreement as soon as possible through pfa.dk or by ordinary post to PFA Pension, Sundkrogsgade 4, 2100 Copenhagen, Denmark.

Complete the agreement on establishment of pension plan without Danish tax deduction

We recommend that you forward the declaration on your foreign tax relations as soon as possible to ensure that you avoid getting a tax deductible plan that subsequently cannot be merged with your pension plan without Danish tax deduction.