Billions in relief for citizens: pension contributions are fully deductible from 2023
Created: 08/05/2022, 12:46 p.m
By: Sarah Neumeyer
Finance Minister Christian Lindner (FPD) (archive image) © Kay Nietfeld/dpa
The contributions to the pension insurance should be fully tax deductible from 2023.
This is evident from the annual tax law.
Berlin – The federal government is introducing relief for citizens.
Taxpayers should be able to fully deduct their pension contributions from next year.
This emerges from the draft for the annual tax law, which is available to the
German Press Agency
.
This is also intended to prevent double taxation of the pension.
According to calculations by the Ministry of Finance, the affected citizens will be relieved by around 3.2 billion euros in 2023.
In 2024, it is therefore still about 1.76 billion euros.
Pension: Contributions to old-age provision should be fully deductible from 2023
The expenses for the pension can be fully taken into account as a special expense.
This happens two years earlier than originally planned.
"We deliberately prefer this step - because relief is particularly important in times of high inflation," said Federal Finance Minister Christian Lindner (FDP) of the
dpa
.
At the same time, the new regulation creates more clarity in the tax system.
"This serves to avoid double taxation," says Lindner.
In the coalition agreement, the traffic light coalition had already agreed on a reform of pension taxation in order to prevent double taxation.
In the future, pensions will only be taxed in the payment phase in old age.
Before that, the expenses for the old-age provision can be claimed for tax purposes.
The conversion includes pensions from the statutory pension insurance, the agricultural old-age fund, the professional pension institutions and from basic pension contracts, so-called Rürup pensions.
(sne/dpa)