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.