Field help:
Have you paid a regular annuity to one or more persons?
Select Yes if you pay a regular monthly annuity to a third person on the basis of a contractual obligation that represents a benefit to the payee.
Pension payments due to asset transfers as part of anticipated succession may be taken into account as special expenses if they are made in connection with the transfer
- of a co-entrepreneurial share,
- of a business or part of a business, or
- of a limited liability company (GmbH) share of at least 50% if the transferor was active as a managing director and the transferee takes over this activity after the transfer.
Important: The deductibility of annuities and long-term financial burdens depends on the date of the contract. Since 2008, the distinction between long-term financial burdens and annuities has been abolished. Annuities are now always "long-term financial burdens". This means that the determination of the share of income previously required for life annuities can be waived. This means that
- The payer may deduct the benefit payments in full as special expenses (sect. 10 para. 1a no. 2 of the Income Tax Act (EStG).
- The recipient of the annuity must pay tax on the full amount of the benefits received as "other income" (sect. 22 no. 1a of the Income Tax Act (EStG).
