D.1.4 Cessation of tax liability (Section 24 of PAL)

Contents

►This section describes the rules on the determination and payment of PAL tax in connection with the cessation of tax liability.◄

►The section covers◄

Rule
Calculation of interest (Section 24(2) of PAL)

Rule

►On the cessation of the tax liability for one of those liable to taxation mentioned in Section 1(2) of PAL, the pension provider must submit a final statement to SKAT specifying:◄

the basis of taxation and the taxable part thereof and
the PAL tax for the current year of taxation and the previous year of taxation if no final statement has been submitted therefor.

►The pension provider must submit the statement to Skattecenter Maribo, Brovejen 15A, 4930 Maribo, Denmark.◄

►The pension provider must pay tax amounts payable plus interest, if any, under Section 24(2) of PAL at the time of submission of the statements to SKAT. ◄

►Amounts must be reported and paid in Danish kroner.◄

►In connection with the final calculation of the basis of taxation, a security will be deemed to have been disposed of at the time of the cessation of the tax liability at an amount corresponding to the market value at the time of the cessation. ◄

Deadline

►The pension provider must submit the statement within three months of the cessation of tax liability. ◄

Calculation of interest (Section 24(2) of PAL)

►Interest accrues on the final PAL tax calculated for the previous year of taxation from the period 20 February in the current year of taxation and until payment is made. The interest corresponds to the interest mentioned in Section 27(5) of PAL for the current year of taxation. ◄

►If the tax payment from the pension provider is overdue, the pension provider should, however, only calculate the interest up until the final due date. In the case of punctual payment of the PAL tax for the current year of taxation, no interest is calculated. If the pension provider fails to pay the PAL tax within the three-month deadline, interest must be calculated under Section 28 of PAL until payment is made. ◄