Pension taxation – Wikipedia

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The Pension taxation depend on § 22 EStG (other income). To the Other income belong to private pensions, some of the pension systems of the company pension scheme and the legal pensions. Private pensions are taxed with the profit share (certain year -related percentage according to § 55 EStDV to § 22 EStG). ^[first] The taxation of pensions was changed with effect from 2005 with the age of the age. The civil servants are taxed after § 19 ESTG.

On March 6, 2002, the Federal Constitutional Court ruled that the different tax treatment of civil servants and pensions from the statutory pension insurance against the principle of equality of the principle Art. 3 Paragraph 1 of the GG is violated and therefore unconstitutional. ^[2] The court therefore asked the legislator to regulate pension taxation at the latest by January 1, 2005.

The argumentation of the Federal Constitutional Court essentially expired to the fact that the employer shares for pension insurance were not taxed, so the pension contains an income part that has not been inferior until then.

The then established expert commission, chaired by Bert Rürup, developed the reorganization of the tax treatment of retirement provisions and age references. The derived age of the age of the age came into force on January 1, 2005. In the meantime, important framework conditions, which were the basis of the recommendation of the expert commission, have changed, among other things, through various changes in the law. ^[3]

It is controversial whether there will be a constitutional double taxation of paid pension contributions after the reform. ^[4] Already in 2007 it was said in a confidential statement by Herbert Rische (then President of the German Pension Insurance) and Bert Rürup (former chairman of the expert commission) to the Federal Finance and Federal Social Ministry that the new taxation “on the basis of the current framework on the basis of the current framework The ban violates twice taxation ”. ^[5] The parliamentary group DIE LINKE brought in 2019 and a. A proposal for a resolution to avoid double taxation in the Bundestag. ^[6] Individual economists in turn criticized the real view in these analyzes and the calculation of the possible double burden. With systematic evaluation, there would therefore be no double taxation. ^[7] However, there is a double burden if the special expenses, i.e. the contributions to the statutory health and long-term care insurance of the pensioners, do not include in the tax-free part of the pension, as is the case in the previous calculation. ^[8] At the same time, the indication that a change in the Income Tax Act was relatively easy; Then the individual detection of double taxation by each individual pensioner is also unnecessary.

In May 2021, the Federal Finance Court dismissed two lawsuits, on the grounds, a double taxation would not be available according to the current legal situation. At the same time, the court stated that in the event of future pensioners, there could be inadmissible double burden in the deposit and withdrawal phase. The calculation must be made according to certain principles: The nominal value principle (without increases in value) should not be applied and the basic allowance and special expenses in the payment phase should not be included in the tax -free amount. ^[9]

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Until 2004, the so -called earnings share of the pension was subject to income tax. Depending on the age of the beneficiary at the start of the pension, a sentence of around 27% to 35% of the pension payment of the income tax was subjected.

Included disability pensions represent abbreviations. Until and including 2004, taxation was carried out according to Section 55 (2) EStDV with the corresponding profit share. If the disability pension was converted into an old -age pension, the share of earnings according to § 22 No. 1 sentence 3 letter a EStG a.F.

Pensions from the statutory pension insurance, Rürup pensions [ Edit | Edit the source text ]

For pensions from the statutory pension insurance, from agricultural agencies, from professional care facilities and for pensions due to a private, capital -covered body insurance within the meaning of Section 10 (1) No. 2 EStG (basic pension (Rürup)), the downstream taxation will be gradually implemented from 2005.
The tax content is no longer determined by the age of retirement, but only after the year of pension. This then applies to the entire pension reference time. All pensions at the beginning of 2005 are taxed 50%. The taxable pension share increases in steps of 2% points from 50% in 2005 to 80% in 2020 and in steps from a 1% point from 2021 to 100% in 2040. The taxable pension share is therefore 50% at the start of the retirement in 2005, 52% at the start of the pension 2006 etc. and finally 100% at the start of the pension from 2040. Correspondingly, the deductibility of the contributions to retirement provision as a special edition of 60% in 2005 increases by 2% annually to 100% in 2025.

Pension adjustment amount [ Edit | Edit the source text ]

The tax -free pension share determined at the start of the pension is determined on the basis of the second pension year. Regular pension increases do not affect the tax -free part, so that regular pension increases can be fully taxed. If the pension amount changes due to special events (e.g. additional payments, introduction of the mother’s pension, reduction in widow’s pension due to other income), the tax -free share must be recalculated. The tax -free share changes in the ratio of the changed pension to the pension that was decisive for the first -time determination of the tax -free share. The sum of the regular pension increases that have been recalculated is Pension adjustment amount . This must be deducted from the amount of the changed pension when recalculating the tax -free pension. It must be sent to the financial administration by the pension provider according to § 22a EStG. ^[ten]

Other pensions [ Edit | Edit the source text ]

Pensions and compensation pensions, such as pensions of the professional association (accident pension) or pensions of the war, remain tax-free.
Lifts from private pension insurance contracts that are not Riester or base pensions, as well as direct insurance according to § 40 b EStG are still only subject to taxation with the share of yield. Librians from sales transactions are also generally taxed with the profit share. Depending on the age of retirement, the share of income is different at the start of the pension and is between 59% (age at the start of the pension 1 year) and 1% (age at the start of the pension 97 years).

As with other types of income, advertising costs and allowances can also be claimed for pensions. The flat rate for advertising costs is 102 euros annually. From the age of 65 there is an age relief amount, the maximum amount of which was 1900 euros in 2005 and 1140 euros in 2015; This allowance is to be reduced to 0 euros by 2040.

Statutory and private pension providers are obliged to send pension referendums for pension years from 2005 to the financial administration electronically from 2005 ( § 22a EStG). The organization of data transfer is the responsibility of the central allowance for old -age assets (ZFA) and began in 2009. ^[11]

Certificates of the pension provider, which are not transmitted directly to the tax authorities, but serve to inform the pensioners, are also Pension reference notification or also as Pension reference certificate designated. The statutory pension insurance sends this certificate on request. ^[twelfth]

In the following example, it is assumed that in addition to the pension, no further taxable income is generated and the amount of the pension, the tax -free subsistence level and the other tax framework data (e.g. tax rate, solidarity surcharge, etc.) remain unchanged over the entire period of pension reference. However, the age relief amount has not been taken into account in this calculation.

For a gross pension from the start of 15,686 € Depending on the respective year of entry, deductions such as above and without taking pension increases and basic allowance increases, the following values:

1. ↑ § 55 Determination of the yield from Liebrents in special cases
2. ↑ BVerfG, 2 BVL 17/99
3. ↑ The state will be duplicate for many citizens in the future , FAZ of March 19, 2016, accessed June 6, 2019
4. ↑ ARD economics magazine “Plusminus”: Financial experts: Double dub taxation is unconstitutional and political scandal ( Memento from December 5, 2020 in Internet Archive ), presseportal.de of January 15, 2019
5. ↑ End with the double taxation of the pension , Wirtschaftswoche from June 1, 2016
6. ↑ Simplify pension taxation and avoid double taxation , BTDRS 19/10282 of May 16, 2019, accessed on June 6, 2019
7. ↑ Malte Chirvi, Ralf Maiterth: Double taxation in the transition to the downstream taxation of legal pensions? In: Tax and economy . 2019, S. 130–143 .
8. ↑ Assignment of special expenses in the pension phase as a determination factor for the presence of double taxation when transferring to the downstream taxation of statutory pensions In: Researchgate.net, May 2020, accessed on June 1, 2021
9. ↑ For so -called double taxation of pension I. In: Bundesfinanzhof.de. 31. May 2021, accessed on June 1, 2021 .
10. ↑ § 22a EStG pension references to the central body, paragraph 1 no. 2 sentence 2
11. ↑ WELT ONLINE: Tax declarations: Tax offices will also check the pensioners from October , In: welt.de , August 2, 2009, accessed June 10, 2021
12. ↑ Pension insurance automatically sends pension data to the tax office. In: Deutsche-Rentenversicherung.de. January 6, 2021, accessed on June 10, 2021 .