Insurance Tax Rules
As a rule, you need to pay tax on payouts if the payments to the plan were tax deductible. On the other hand, payouts will be tax-free if the payments were subject to tax. Here, you find the general rules:
PFA Health Insurance
Tax on payout: Treatments are tax-free
Tax on payment: Tax-free for the individual employee if all employees in the company are
offered the plan. Otherwise subject to tax
PFA Health Insurance for children
Tax on payout: Treatments are tax-free
Tax on payment: Subject to tax
PFA Critical Illness – lump sum benefit
Tax on payout: Tax-free
Tax on payment: Subject to tax
PFA Occupational Capacity – regular payouts
Tax on payout: As personal income
Tax on payment: Tax-free
PFA Occupational Capacity – lump sum benefit
Tax on payout: Subject to a 40 % flat-rate tax to the Danish State
Tax on payment: Tax-free
PFA Occupational Capacity – regular payouts for children
Tax on payout: As personal income
Tax on payment: Tax-free
PFA Life – lump sum benefit
Tax on payout: Subject to a 40 % flat-rate tax to the Danish State. If the money is paid
out to others than a spouse or registered partner, estate tax is also payable.
Tax on payment: Tax-free
PFA Life – Children’s pension
Tax on payout: As personal income
Tax on payment: Tax-free
Tax card information
PFA receives changes to your tax card electronically. This way, your tax card is automatically registered for E-tax. If you want PFA Pension to use another type of tax card than the registered card, please forward the information to us at pension@pfa.dk or call us at (+45) 70 12 50 00.
Foreign countries and taxation
You can receive payouts from your pension and insurance plans even if you live in another country than Denmark. Special terms apply to payouts and transfers, just as tax must be settled in either Denmark or your country of residence.