How are pensions taxed under the Denmark-United States tax treaty?

The Denmark-United States tax treaty sets the withholding rate on pensions at 30%. This means the country paying the pension may withhold up to 30% at source. The recipient's country of residence will typically provide a credit or exemption for this withholding to avoid double taxation. Social security benefits are subject to a separate rate of 30% under this treaty. This 30% rate compares to a median of 0% across Denmark's 36 active treaty partners, and 0% across United States's 64 active partners.