Taxation of pensions
March 28, 2013 | 25,00 EUR | answered by StB Patrick Färber
I will retire in 2015 at the age of 65 and will receive a pension of 400 euros starting in July 2015, as well as a pension of 2100 euros starting in August. How much tax will I have to pay for both retirement benefits combined?
Dear questioner,
A more precise tax calculation as requested by you cannot be made without further information (individual assessment, joint assessment, special expenses, additional advertising costs??), but I will explain the principle:
- Your pension is included in the income calculation with 70% and a small advertising cost deduction of EUR 102,- is subtracted.
- The pension is taxed "normally", but there are special pension relief amounts, in your case EUR 2,340,- per year (in 2015 for 5 months). Additionally, the lump sum of EUR 102,- comes into play. However, income tax is already withheld from the pension, which you can credit at the end of the year.
In 2015, I would estimate that for 6 months of pension and 5 months of pension, with INDIVIDUAL ASSESSMENT, a taxation between 1% and 3% of your income (approximately 300-500 EUR) would result, with a refund remaining at the end after offsetting against income tax.
From 2016, around EUR 24,000,- of taxable income would likely occur, which would be taxed at around 16% to 17% (based on current rates), around EUR 3,800,-. The withholding tax would again be offset against this.
Does this help approximately?
Happy Easter holidays!
Patrick Färber
Tax Advisor
patrickfaerber@arcor.de
