The Limited Times

Now you can see non-English news...

More and more pensioners have to pay income tax

2022-06-30T09:26:49.256Z

Last year income tax was due on almost 65 percent of statutory, private or company pensions. The quota is expected to increase further until 2040. Employed people are relieved more.



Enlarge image

Seniors on a park bench: the tax authorities get more money back

Photo: Felix Kästle/ dpa

Less net than gross - this also applies to pensioners in Germany: Income tax is due for more and more pension benefits.

Last year, almost 65 percent of the statutory, private or company pensions were part of the taxable income - a total of 227 billion euros, as reported by the Federal Statistical Office.

The share has thus increased by 9.7 percentage points since 2015.

The background to this is the new regulation of the taxation of retirement income from 2005. Since then, the taxable portion of the pensions for the respective new pensioners has increased by two percentage points annually from 50 percent at the time.

One hundred percent will be achieved in 2040.

Conversely, younger employees can deduct more and more expenses for old-age provision from their taxes.

According to the statistics office, it is not yet known how many pensioners will pay income tax for 2021.

According to the latest data, a third of pensioners paid income tax in 2018, affecting 7.3 million pensioners.

Compared to 2017, the proportion increased by two and a half percentage points or approximately 590,000 people.

In 2021, 21.9 million people received benefits of around 350 billion euros from statutory, private or company pensions.

mic/AFP

Source: spiegel

All business articles on 2022-06-30

You may like

News/Politics 2022-04-18T03:32:53.561Z
News/Politics 2022-05-10T06:26:34.837Z
News/Politics 2022-03-28T03:19:59.650Z
News/Politics 2022-05-23T03:01:39.259Z
News/Politics 2022-05-13T03:01:21.544Z
News/Politics 2022-05-27T06:54:48.209Z
News/Politics 2022-04-19T14:32:19.184Z
News/Politics 2022-04-20T03:21:40.782Z

Trends 24h

Business 2022-08-17T10:06:02.545Z
Business 2022-08-17T10:47:20.898Z

Latest

© Communities 2019 - Privacy