Pension expenses

Tax law takes into account tax-reducing expenses that a taxpayer incurs as a precaution against life risks and for old age. According to § 10 and § 10 EStG, pension expenses include pension contributions and contributions to health, long-term care, accident, statutory pension and liability insurance (other pension expenses).
The contributions to certain life insurance policies can also be taken into account. Other pension expenses also include risk insurance that only provides benefits in the event of death, as well as occupational disability insurance that does not count as pension contributions. Pension contributions are granted up to € 20,000.

As part of the transition to the subsequent taxation of retirement income, the maximum amount according to § 10 III EStG is only granted proportionally (e.g. 60 % for the year 2005). The maximum deductible pension expenses will increase annually from 2006 until the maximum amount of € 20,000 is reached in 2025.

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