Since 2005, taxed pensions to a growing share. What proportion is affected by the so-called downstream taxation, depends on the year of Retirement. In the case of pensioners who have gone before in 2006, in pension, 50 per cent of the remuneration subject to tax. This tax free proportion shrinks for later cohorts. From 2040, then public pensions will be fully taxed.
criticism of double-taxation
While expenditures for retirement during the working life increasingly tax-free, but critics see in the scheme by the Federal constitutional court prohibited double taxation. "The double taxation of pensions leads to a disproportionate burden on small and medium incomes," said the group Vice of the FDP group in the Bundestag, Christian Dürr, the "süddeutsche Zeitung". "Olaf Scholz, now has to Wake up and make it clear how the risk of double taxation can be prevented."
The court-judge Egmont Kulosa had already been represented in the past year, the view, the pension taxation was unconstitutional, reported the "Süddeutsche Zeitung" at the time.Updated Date: 09 July 2020, 22:19