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Home page // Remember your pension before the end of the year
You get an extra deduction for deposits of up to DKK 80,600. This applies to both private and ...
December 10, 2024

Remember your pension before the end of the year

You get an extra deduction for deposits of up to DKK 80,600. This applies to both private and employer schemes. In addition, self-employed people can contribute up to 30% of the year's profits.

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 maximum deduction of DKK 63,100 to an annuity pension in 2024. If you contribute to an annuity pension through your employer, the amount is DKK 68,586 in 2024, as the amount here is inclusive of labor market contributions.

Extra deduction for pension contributions

There's good reason to contribute to pension plans, because you get an extra deduction for contributions of up to DKK 80,600. This applies to both private and employer schemes.

If you have more than 15 years until the state pension age, you get a tax deduction of 12%. This corresponds to DKK 9,672 if you take full advantage of the deduction.

If your retirement is 15 years or less away, the deduction is 32% of the contribution, corresponding to a maximum of DKK 25,792.

In 2024, the extra pension deduction will include pension contributions of up to DKK 80,600. 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.

At the same time as the 30% of the year's profit, you can pay up to DKK 63,100 into your annuity pension.

Additional information

If you need advice, you are welcome to contact inforevision's tax department. You can read more about us here.

Flemming Saabye
Head of the tax department
T: 39 53 50 38
fsa@inforevision.dk

Jannik Petersen
Tax advisor
T: 39 53 50 47
jpe@inforevision.dk

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