- Additional pension savings
- Disability pension
- Division of pension rights
- Foreign nationals
- Half-pension
- Mandatory Pension Funds
- Moving to another country
- Old-age pension
- My pension fund
- Purchase of first apartment
- Rights
- Specified additional pension savings
- Supervision and maintenance
- Summer jobs
- Surviving spous's pension and child allowance
- Taxation
- Upon death
- All
Taxation
Why do I have to pay taxes on my pension payments?
While a pension is taxed as any other work income, pensioners can use their personal allowance to reduce their taxes. As pension contributions are being paid without being taxed into a pension fund, this avoids double taxation of a pension. Rights at pension funds are exempt from capital gains tax on interest income.
What tax regulations apply to contributions to a pension fund?
A fund member can at most deduct 8% of his/her wages from taxable income, 4% for a contribution into a coinsurance fund and 4% for additional pension savings.
Wage payers’ contributions are deductible before income tax is calculated. Thus, they are not deemed to be wage earners’ benefits.
Income tax is calculated upon payment of the pension, as on other income.
What tax regulations apply to additional pension savings?
The same tax rules apply to contributions for additional pension savings as to pension fund contributions. The contributions are deductible from your tax base, thus reducing your taxes. However, pension payments are taxed, like any other income from work. Pensioners can therefore utilise their personal deductions to lower taxes.
