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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Denmark: double taxation agreement, SI 1980 No 1960, Article 28: Miscellaneous rules

  1. Where under any provision of this Convention income is relieved from Danish tax and, under the law in force in the United Kingdom, an individual, in respect of the said income is subject to tax by reference to the amount thereof which is remitted to or received in the United Kingdom and not by reference to the full amount thereof, then the relief to be allowed under this Convention in Denmark shall apply only to so much of the income as is taxed in the United Kingdom.
  2. The term ‘political subdivision’, in relation to the United Kingdom, includes Northern Ireland.
  3. Subject to the conditions specified in paragraph (4) of this Article, where an individual, who is a resident of a Contracting State, is a member of a pension scheme which is established in, and recognised for tax purposes by, the other Contracting State and exercises an employment in the first-mentioned State:

 

 

  1. contributions paid by the individual to that pension scheme shall be relieved from tax in the first-mentioned State in the same way as if the pension scheme was recognised for tax purposes by that State; and
  2. payments made to the pension scheme by or on behalf of the individual’s employer:
(i) shall not be deemed to be taxable income of the individual, and  


(ii) shall be allowed as a deduction in computing the profits of the employer,  


in the first-mentioned State in the same way as if the pension scheme was recognised for tax purposes by that State.  
  1. The conditions specified in this paragraph are that:

 

 

  1. the individual exercises his employment in the first-mentioned State for an employer who was his employer immediately before he began to exercise his employment in that State or is an associated employer of that employer;
  2. the individual was a member of the pension scheme immediately before he became a resident of the first-mentioned State;
  3. the pension scheme is accepted by the competent authority of the first-mentioned State as corresponding to a pension scheme which is recognised for tax purposes by that State.

 

  1. For the purposes of this Article:

 

 

  1. the term ‘pension scheme’ means:
(i) in the case of Denmark, a compulsory, employment-related arrangement (other than a social security scheme) in which the individual participates in order to secure retirement benefits, or in the absence of such an arrangement, a personal pension scheme, and  


(ii) in the case of the United Kingdom, an employment-related arrangement established for the sole purpose of providing retirement benefits, or in the absence of such an arrangement, a personal pension scheme;  
  1. a pension scheme is recognised for tax purposes by a Contracting State if in that State:
(i) the individual's contributions to the pension scheme qualify for tax relief, or  


(ii) payments made to the pension scheme by or on behalf of the individual's employer are not deemed to be taxable income of the individual;  
  1. employers are associated where:
(i) one participates directly or indirectly in the management, control or capital of the other, or  


(ii) the same persons participate directly or indirectly in the management, control or capital of each of them.