Waiver of pension provisions as wages
November 18, 2009 | 25,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
My late husband was the managing director of a GmbH. There was a pension provision amounting to 100,000 euros. A reinsurance coverage of approximately 75,000 euros. According to actuarial opinion, the pension entitlement has a value of approximately 200,000 euros.
I have now reached an agreement with the other shareholders that I will only receive the reinsurance coverage as compensation for the valuable pension commitment.
I must subject this to income tax and tax it with the 1/5 regulation, which I already know.
But now I have heard that I have to tax not the 75,000 but the 200,000 euros. This difference would be a hidden contribution. But I was never a shareholder!
Is this correct?
Dear advice seeker,
thank you very much for your inquiry, which I would like to answer based on your information and taking into account your commitment in the context of an initial consultation as follows:
According to your information, the pension entitlement is backed with 75,000 euros. If you now transfer the entitlement of the reinsurance policy at the same time as waiving the claim from the pension commitment, it is not a waiver of pension, but a settlement of the pension entitlement with an asset value, namely the 75,000 euros. The reinsurance claim then results in taxable income of 75,000 euros, as you have indicated. The transaction also does not trigger a hidden profit distribution, as there is NO reduction in profit in the GmbH.
In the GmbH balance sheet, this unified process is to be recorded to the extent that it is success-neutral, as the activated reinsurance claim and the provision for pension obligations offset each other. This would be an amount of 25,000 euros, which would increase the profit in the GmbH balance sheet.
I hope my explanations were helpful to you.
Sincerely,
Ulrich Stiller
Tax advisor
