Denmark Tax Company Clarifies Taxation of Overseas Life Insurance coverage

The Danish Customs and Tax Administration Jan. 30 posted on-line Tax Council Binding Reply No. SKM2023.50.SR, clarifying the taxation of international life insurance coverage insurance policies. A taxpayer took out two non-public German life insurance coverage insurance policies whereas resident in Germany. He lacked the proper to deduct the funds in Germany as a result of his funds to public medical health insurance exceeded their tax deduction restrict. The taxpayer later moved to Denmark and have become absolutely tax liable there. He sought clarification from the tax company as as to whether lump sum funds from the insurance policies can be exempt underneath Denmark’s Pension Taxation Act, and if annual will increase …