Accountant Monika Nadler from Brunswick informed the retirement income Act of 1 January 2005 has reformed sustainable income taxation of benefits statutory pension. Pension beneficiaries currently are subject to the tax burden, explains the Brunswick accountant Monika Nadler. The Constitutional Court delivered a groundbreaking judgment to the einkommenssteuerlichen assessment of benefits from statutory pension funds on March 6, 2002 (BVerfG, 2BvL 17/99). By it the tax differentiation of civil service pensions and annuities of statutory funds to the unconstitutional violation of the constitutional principle of equal treatment (article 3 para 1 GG) declared Germany’s highest judicial authority forced the legislature to reform of the taxation of pensions. Release of the decision of the Constitutional Court were tax laws, kowtow to the pensions of officials of the full income tax, but only a tax on the income share envisaged for services of the statutory pension, which accounted for between 27% and 32% of the amount of the pension. The required legislative changes were introduced by the old age pension Act with effect from 1 January 2005. You stipulate that the taxable percentage continuously raised pensions from statutory pension funds until the year 2040 up on the full taxation of mandatory. Retirement income Act set a marginal tax rates by 50%, which should rise annually by two per cent and below by 2040 to each one percent up to 2020.
Pensions, which were already paid before the year 2005, subject to the input tax. The taxation rate determines the pension share which serves the income tax over the entire pension entitlement period as a base. The taxation of pensions is also influenced by the continuously declining and 2040-current age relief amount in section 24a of the EStG. The tax changes of the retirement income law depend on the retirement date. Start receiving pension, tax rate and age relief amount be laid down for the entire duration of the pension. In 2010, for the first time claimed benefits of the statutory pension, taxed, taking into account an annual retirement relief amount of 1520 euros, 60%.
The retirement is in contrast, in the year 2011, taxed pension share increasing to 62%, the retirement relief amount to maximum 1444 euro per year declining. Part of the retirement income law also made improvements the tax eligibility of expenses for retirement provision. You increases by the year 2025 to two percent annually, which at this time an expenditure amounting to 20,000 euros per year will qualify for dismissal. Tax-deferred expenses to the pension plan are contributions to the various forms of statutory pension insurance, as well as fully funded private Rurup pensions.” More expenses to the pension are deductible in connection with the provisions of the Civil Relief Act from the year 2010, unless the corresponding allowances not already by the dismissal of contributions to the health and long-term care insurance be used up. The increased tax deductibility of private retirement pension expenditure complies with the will of the legislator, as many citizens to engage itself ensure a reasonable pension. Without professional assistance, it is however difficult to ensure a provision, which contributes to the tax relief and financial protection for old age for most taxpayers. As experienced tax advisor, Monika Nadler supports their Brunswick firm’s clients in the design of a tax-efficient precautionary approach, as well as in all matters relating to the taxation of pension benefits. Press contact Monika of n tax advisor Tang mountain. 1 38106 Braunschweig Tel.: 05 PM 31 / 2 33 50 77 fax: 05 31 / 2 33 50 79 email: Homepage:
