When does the pension have to be taxed?
Whoever draws a pension is certainly wondering when it has to be taxed. You should know that taxes only have to be paid to the tax office if the amount exceeds a certain amount.
When did the pension taxation scheme intervene?
- Basically, until 2005, the pension does not have to be taxed. When you have to pay taxes has only emerged from this year due to a change in the legislature.
- This change in the law generated a lot of anger, as the retirement contributions paid were already subject to tax. The legislature reacted to this by adding the retirement provision is only registered for tax above a specified amount.
- You should know that if the amount is below the subsistence level, you do not have to pay taxes on your retirement savings. The taxable income must then be less than 7,664 euros. In addition, you can claim a flat rate for advertising expenses of 102 euros. The tax is only due if you are above the subsistence level plus the flat rate for income-related expenses. You can also deduct your private liability insurance and your motor vehicle liability insurance from tax.
Pension only has to be taxed above a certain amount
- You should know exactly when the pension has to be taxed. There is a very generous limit to this.
- If you take advantage of all tax reductions and you only have your pension as income and not beyond that Income from investment income, so you can draw a pension worth 18,900 euros per year without tax pay.
- Many people who receive retirement provision have a part-time job. If you carry out the secondary activity on an income tax card, your income is subject to taxation. However, you can then deduct special ancillary costs from tax.
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