PensionDanmark aims to maximize returns after costs and taxes in compliance with tax legislation of the countries, in which we invests.

In Denmark, PensionDanmark pays pension yield tax (PAL) on all investment returns as well as duties in the form of tax on labour costs and VAT.

In 2018, PensionDanmark paid a total of DKK 200m in tax and duties to the Danish tax authorities.

PensionDanmark complies with tax legislation in the countries where we invests. PensionDanmark expects the companies in which we invests, to pay their due tax.

Tax Code of Conduct

PensionDanmark recognizes the importance of tax as an integral measure in achieving UN’s sustainable goals as well as the need for a common framework for responsible tax behavior. We wish to support and contribute to these developments as part of our responsible investment strategy.

To facilitate the above principles, ATP, PFA, PensionDanmark and Industriens Pension have developed a mutually agreed set of tax principles for unlisted investments in the form of a Tax Code of Conduct.

Tax Code of Conduct 

Tax in portfolio companies

Through our external partner, Hermes EOS, PensionDanmark monitors the behavior of our equity portfolio companies. On our behalf, Hermes EOS enters into dialogue with the companies regarding their Environmental, Social and Governance standards (ESG), as well as tax policies.

PensionDanmark emphasizes that the companies must have a tax policy; are capable of managing tax risks; and they must be prepared to handle changes to VAT-rules. We also encourage the companies to adopt a high level of transparency in terms of their tax policies.