Postponing the payment of a severance payment to the following year.
April 20, 2012 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear Sir or Madam,
Is it possible to agree individually in a termination agreement with a departure, for example on June 30, 2012, to pay the severance for January 2013 and thus benefit from the fifth rule only in the following year? Or does the tax office see this as "abuse of design" due to the lack of temporal connection?
Is this design possibly also dependent on the content of a framework agreement for termination agreements, for example if this provides for a payment "usually one month after departure"?
Thank you. Regards.
Dear client,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your involvement in an initial consultation as follows:
For the application of the "Fünftelregelung" (tax calculation for one-time income), it is necessary that the severance payment represents compensation for the premature termination of the employment relationship initiated by the employer.
Furthermore, it is a requirement that this compensation is paid out in ONE calendar year and that the compensation is higher than the expected earnings from the terminated employment relationship (income clustering).
The severance payment can also be paid out in January 2013. If the conditions I mentioned are met, you will still receive the tax calculation benefits in 2013, but the severance payment must be fully paid out in 2013.
The termination agreement should clearly specify the timing of the severance payment.
I hope I was able to assist you.
Best regards,
Ulrich Stiller
Tax consultant/Diplom-Betriebswirt
