Billion relief announced
Lindner: Pension contributions will soon be fully deductible
08/05/2022 1:24 p.m
Because of the high inflation, Minister of Finance Lindner is pushing for tax relief. One draft provides that citizens can fully deduct their pension contributions from next year. These should then be treated as special editions.
Taxpayers should be able to fully deduct their pension contributions from next year. This emerges from a draft for the annual tax law. 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. The expenses for the old-age provision 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 Finance Minister Christian Lindner. At the same time, the new regulation creates more clarity in the tax system. “This serves to avoid double taxation,” says Lindner.
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.