Taxation of pension and company pension schemes
September 21, 2016 | 25,00 EUR | answered by Ginster Frank
What is the taxation of my pensions, namely 17,850 euros statutory pension and 7,614 euros company pension without consideration of personal data on advertising costs?
Dear inquirer,
First of all, we would like to thank you for your inquiry. Based on the information you provided and considering the fee you paid for the initial consultation, we would like to answer as follows:
Pensions from the statutory pension insurance are subject to taxation at a rate of 72% according to § 22 No. 1 sentence 3 a) aa) if the pension begins in 2016 (assuming) (Note: The taxable portion increases by 2% for each subsequent year of retirement).
17,850 EUR x 72% (28% tax-free) 12,852 EUR
minus flat-rate allowance for advertising costs § 9a No. 3 EStG -102 EUR
taxable income 12,750 EUR
The taxation of income from company pension plans depends on the type of income (direct commitment, support fund, direct insurance, pension fund, or pension fund). The benefits can be income from employment or other income. The taxation also depends on your age at the start of the pension.
In determining the tax rate, contributions paid by the German Pension Insurance for health and long-term care insurance should also be considered as special expenses.
If you have any further questions, please feel free to contact us by phone at 02232 / 93 45 0.
