In 2022, pension contributions are fully deductible up to 25.639 Euro for single persons and 51.278 Euro for married couples. However, these contributions only have a tax-reducing effect of 94 per cent, i.e. a maximum of 24.101 Euro or 48.202 Euro.
Your contributions to the statutory pension insurance are half paid by your employer, and you pay the rest. From your pension expenses, which are only partially deductible, you must therefore deduct the employer's contribution in full.
You pay 5.000 Euro into the pension insurance, and your employer pays the same amount. Of this 10.000 Euro annual contribution, your deductible share (94 per cent) is 9.400 Euro. However, since you have already received the employer's contribution tax-free, you must deduct it again, leaving 4.400 Euro that actually have a tax-reducing effect.
Note: The Federal Fiscal Court considers the statutory transitional regulations in connection with pension taxation and the deduction of pension expenses to be constitutional (BFH rulings of 19.5.2021, X R 33/19 and X R 20/21). However, it has pointed out that this does not apply to future pensioners. There could be a risk of double taxation.
The Federal Government has announced that the full deductibility of pension contributions during the working phase, planned for 2025, will be brought forward to 2023.
