Disability pension
March 3, 2015 | 30,00 EUR | answered by Anton Pernitschka
Inquiry
I am a retiree with German citizenship residing in Germany, Kenya, with a severe disability and receiving a permanently constant disability pension from the Austrian insurance company in accordance with the Austrian Federal Law for Development Workers §7 Paragraph 1 and 2.
In this case, how is the taxation handled? In which country can the pension be taxed? In what form does this need to be done?
Dear questioner,
In the context of an initial consultation and your fee commitment, in compliance with the regulations of this forum, I would like to answer your questions.
Based on the information provided, you are a resident of Germany. It is not clear from the query whether you also have a residence in Kenya.
If you are a resident of Germany and receive a disability pension from Austria, Article 18 of the Austria-Germany Double Taxation Agreement applies (reference to Article 4 for residency).
If a person resident in Germany receives retirement or pension benefits from Austria, these benefits are only taxable in Germany.
According to § 3 para. 1 a of the Income Tax Act, benefits from statutory accident insurance are generally tax-free. Accident pensions granted under an existing foreign statutory insurance are also tax-free.
The response is based on the information provided. Missing or incorrect information about the actual circumstances may affect the legal outcome.
Sincerely,
Anton Pernitschka
Tax Advisor
