Why has 40% tax been withheld on my pension?
If the tax rate for pension income is not known by us at the time when the payment of pension begins, we are required, under the tax legislation, to withhold 40% tax for both future and retroactive pension. We also have to withhold 40% tax on a rise in your pension income if your pension income rises by over 20 euro.
We will refund any overpaid tax as soon as we receive your tax card for pension income from the tax authority. Your tax card must, however, be in force retroactively.