Taxation of pension income#

The taxation of pension income depends on how contributions were taxed during the accumulation period. Pension income is taxed under one of two regimes:

  • Deferred taxation (nachgelagerte Besteuerung): Pension income is fully (or partially) taxed when payout is received.

  • Ertragsanteilbesteuerung: Pension income is taxed based on a fixed share of the notional return.

In principle, pensions that were favourably taxed during the accumulation phase (i.e., contributions were fully or partially income tax-deductible) are taxed via the deferred-taxation schemes. Pensions for which contributions were paid from already-taxed income are taxed via the Ertragsanteilbesteuerung.

Before 2005, all 1st-pillar pensions were taxed via the Ertragsanteilbesteuerung. The Alterseinkünftegesetz (AltEinkG, BGBl. 2004 I Nr. 33) moved them to the cohort-based deferred-taxation regime from 2005 onwards. Other deferred-taxation regimes (§ 22 Nr. 5 EStG, § 19 EStG) for occupational and Riester pensions were unaffected.

Mapping products to GETTSIM input columns#

1st pillar (statutory)#

1st pillar pensions are subject to deferred taxation since 2005 (AltEinkG, BGBl. 2004 I Nr. 33). There is a phase-in based on the year of retirement that determines the taxable share of the pension (Besteuerungsanteil, § 22 Nr. 1 Satz 3 Buchst. a aa EStG).

You can pass them to GETTSIM via the following inputs:

  • einnahmen.renten.gesetzliche_m — Gesetzliche Rentenversicherung (DRV).

  • einnahmen.renten.aus_berufsständischen_versicherungen_m — Berufsständisches Versorgungswerk (Ärzte, Anwälte, Apotheker, etc.).

2nd pillar (occupational)#

Occupational pensions are fully taxable — either as Versorgungsbezüge under § 19 EStG (Direktzusage, Unterstützungskasse) or as sonstige Einkünfte under § 22 Nr. 5 EStG (Pensionskasse, Pensionsfonds, Direktversicherung).

You can pass them to GETTSIM via the following input:

  • einnahmen.renten.betriebliche_altersvorsorge_m — Betriebliche Altersversorgung.

3rd pillar (private)#

Private pensions are subject to deferred taxation or Ertragsanteilbesteuerung depending on how contributions were taxed during accumulation.

The following inputs are taxed under the deferred-taxation regime:

  • einnahmen.renten.basisrente_m — Basisrente / Rürup-Rente. Taxed using the Besteuerungsanteil (§ 22 Nr. 1 Satz 3 Buchst. a aa EStG).

  • einnahmen.renten.geförderte_private_vorsorge_m — Riester-Rente and other contracts subsidised via § 10a EStG. Fully taxable (§ 22 Nr. 5 EStG).

Private pension contracts that were not subsidised during accumulation are taxed via the Ertragsanteilbesteuerung (§ 22 Nr. 1 Satz 3 Buchst. a bb EStG):

  • einnahmen.renten.sonstige_private_vorsorge_m — Kapitallebensversicherung and other private pension plans outside Basisrente / Riester.