Allowance table
The Pensions Reform promotes private pension provision through allowances or the tax breaks for extraordinary expenses. This means that the contributions paid into the pension are tax-free. The most favourable principle (Günstigerprinzip) applies for the calculation of the incentives. The tax office determines whether the incentive to be granted is already covered through the allowances or if there is an additional tax saving from the deduction of extraordinary expenses for tax purposes.
The table shows the movement in incentives, irrespective of whether the savings are achieved through a private pension or occupational pension.
| Year | Extraordinary expenses deduction max. € |
Basic allowance € |
Child allowance € |
Minimum contribution *) |
 |
||||
|
||||
|
||||
| 2002/2003 | 525,00 | 38,00 | 46,00 | 1,0 % |
|
||||
|
||||
| 2004/2005 | 1.050,00 | 76,00 | 92,00 | 2,0 % |
|
||||
|
||||
| 2006/2007 | 1,575,00 | 114,00 | 138,00 | 3,0 % |
|
||||
|
||||
| ab 2008 | 2.100,00 | 154,00 | 185,00 | 4,0 % |
|
||||
|
||||
|
||||
|
||||
| *) The receipts in previous assessment periods on which pension insurance is payable reduced by state allowances. |
||||
|
||||