Remember your pension before the end of the year
You get extra deductions for contributions of up to DKK 83,800. This applies to both private and employer schemes. In addition, self-employed persons can contribute up to 30% of their annual profit.
You can especially minimize your tax payment if the contribution is made to a private pension plan - and especially if you pay top tax. If the contribution is made to an employer scheme, it will "simply" reduce your total salary income for the year. This is also known as the "exclusion right".
The difference is that with a private pension plan, you have paid tax on your salary, but receive a deduction on your tax return.
With an employer scheme, the amount of salary you are taxed on is reduced, but you do not get a deduction, except for the additional deductions below. However, your potential top tax bracket will be reduced.
Paying into an annuity pension
You can contribute and receive a tax deduction of up to DKK 65,500 on an annuity pension in 2025. If you contribute to an annuity pension through your employer, the amount will be DKK 71,195 in 2025, as this amount includes labor market contributions.
Extra deduction for pension contributions
There is good reason to contribute to pension schemes, because you get an extra deduction for contributions of up to DKK 83,800. This applies to both private schemes and employer schemes.
If you have more than 15 years until retirement age, you will receive a tax deduction of 12%. This corresponds to DKK 10,056 if you take full advantage of the deduction.
If you are 15 years or less away from retirement, the deduction is 32% of the contribution, corresponding to a maximum of DKK 26,816.
You can read more at skat.dk.
Self-employed can contribute 30% of profits to a lifelong pension
If you are self-employed, you can pay up to 30% of your profit (profit before interest and capital gains/losses) into a lifelong pension/annuity.
The deposit must be made before the end of the income year. As a self-employed person, your accounts will not be complete at that time, so the deposit must be based on an estimate of the year's profit. This means that you will probably deposit too little or too much.
If it subsequently turns out that you have deposited less than 30% of your profits, it is not possible to "top up" by depositing more.
Conversely, if you have paid too much, the excess amount cannot be refunded, but can be transferred as a prepayment on next year's deduction under the 30% scheme.
In addition to the 30% of your annual profit, you can pay up to DKK 65,500 into your installment pension.
Additional information
If you need advice, you are welcome to contact inforevision's tax department. You can read more about us here.
