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 Policy

PensionDanmark seeks to optimise the pension savings of its members to the widest extent possible. At the same time, PensionDanmark wants to act responsibly, also in the area of tax. PensionDanmark has therefore chosen to publish its tax policy.

The Tax Policy covers both PensionDanmark as a company and as investor with respect to unlisted investments.

Read the Tax Policy

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 behaviour. PensionDanmark wishes to support and contribute to these developments as part of PensionDanmark’s responsible investment strategy.

To facilitate the above principles, ATP, PFA, PensionDanmark and Industriens Pension have developed a set of mutually agreed tax principles for unlisted investments in the form of a tax code of conduct (“Tax Code of Conduct”). The Danish pension funds, AP Pension, Lægernes Pension, MP Pension, PenSam, Pædagogernes Pension, P+, Velliv, the Leo Foundation, Novo Holdings, The Lundbeck Foundation, The Villum Foundation, The Velux Foundation and Realdania have subsequently joined the Tax Code of Conduct.

Tax Code of Conduct

Tax in portfolio companies

Through our external partner, Hermes EOS, PensionDanmark monitors the behaviour 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.

As a member of The B Team, PensionDanmark endorses The B Team Responsible Tax Principles. Together with leading investors, PensionDanmark encourages companies to commit to responsible tax practice in The B Team Responsible Tax Principles Investor Support Letter.

Read more about The B Team Responsible Investor Support Letter