Method for verifying double taxation of pensions

The Federal Fiscal Court is convinced that the previous calculation method for checking double taxation of old-age pensions is fully justified.

In the spring, the German Federal Fiscal Court (Bundesfinanzhof) ruled in several landmark decisions on when double taxation of old-age pensions exists. According to these rulings, there is no unconstitutional double taxation of pension contributions and pension benefits if the total of the expected tax-free pension inflows is at least as high as the total of the pension contributions paid from taxed income. In proceedings on the suspension of execution, the Federal Fiscal Court has now confirmed that there are no serious doubts about the previous calculation method for verifying double taxation of retirement pensions.