Field help:
Have you paid a regular annuity to one or more persons?
Select Yes if you pay a third party a regular monthly pension due to a contractual obligation, which constitutes a pension benefit for the recipient.
Pension benefits resulting from asset transfers as part of anticipated inheritance can be considered as special expenses if they are related to the transfer of
- a partnership share,
- a business or part of a business, or
- at least 50% of a limited company share, if the transferor was employed as a managing director and the transferee takes over this role after the transfer.
Important: The deductibility of pensions and recurring burdens depends on the date of the contract. Since 2008, the distinction between recurring burdens and pensions has been abolished. Pension benefits are now always "recurring burdens". This means that the previously required calculation of the income share for life annuities can be omitted. This means:
- The payer may deduct the pension benefits in full as special expenses (§ 10 para. 1a no. 2 EStG).
- The recipient of the pension must fully declare the received pension benefits as "other income" (§ 22 no. 1a EStG).
