This changes now for pensioners in the tax assessment

Tax assessments, which are possibly based on double taxation of pensions, should initially only be ied provisionally. For affected Pensioners this is good news, because they will no longer have to appeal their tax assessment if they object to it, according to a letter from the Federal Ministry of Finance.

The amendment concerns Tax assessments, which will happen in the future – but may also relate to earlier tax payments. The letter is addressed to the supreme tax authorities of the federal states; it applies with immediate effect.

Accordingly, the new regulations affect all people who since 2005 have received pensions from the statutory pension insurance, from a professional pension fund or a Rurup pension and whose Tax assessment notice are not yet final.

Double taxation: Supreme Tax Court hands down landmark ruling

The background is a decision by the Federal Fiscal Court at the end of May, which new calculation basis for the determination of a double taxation had determined. According to the letter, the previous accounting method of the tax authorities may result in prohibited double taxation.

A Double taxation – in technical terms, this is double taxation – occurs when the insurance contributions paid from income that has already been taxed were higher than the tax-free portion of the pension payments. The double taxation exists especially for future pensioner cohorts.

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