Compensation payments for pension rights equalization under the old law

Compensation payments for a company pension plan that were paid as special expenses before they were legally fixed are deductible as income-related expenses.

Since 2015, the law has stipulated that equalization payments to avoid a pension equalization are to be treated as special expenses. In contrast, the tax office may want to classify equalization payments made before 2015 as non-tax-deductible acquisition costs for an expectant right to a future pension. This has been contradicted by the Baden-Württemberg Tax Court: In the case of a company pension plan, the compensation payments are deductible as income-related expenses in income from employment.