Field help:
Partial income procedure?
If the recurring payments are subject to the partial income procedure (TEV), select "yes".
Important: The partial income procedure is an exception and only applies to special situations involving shareholdings in corporations (e.g. GmbH or AG).
The TEV applies to recurring payments only if all the following conditions are met:
- You hold at least 25% of the shares in a corporation or at least 1% and are also employed by the company,
- and the recurring payments are directly related to this shareholding, e.g. a private pension commitment that does not fall under company pension schemes.
Example: A GmbH shareholder (30% share) receives a private pension payment from an agreement with previous shareholders – not via a company pension scheme. This payment falls under the TEV: 60% taxable, 40% tax-free.
The TEV does not apply to:
- Private annuities from house or farm transfers
- Payments due to renunciation of inheritance or compulsory portion
- Pension payments not related to a shareholding in a corporation
