The reform of the Alterseinkünftegesetz (Retirement Income Act) took place in 2005. In 2011, the tax offices began to act in earnest, to the alarm of many pensioners. Reason enough for Die Zeit to publish an article on "Suspicious Pensioners" in November 2011. Our Steuerberaterin (German Certified Tax Advisor) and partner Anke Büker was also consulted for the piece and is quoted as follows, among other statements: »Many pensioners are still under the mistaken impression that a tax return only has to be filed when the tax office requests one.« If you also feel like a suspicious pensioner, you are welcome to contact us directly. We will provide clarity for you. If you would like to learn more, you can download the article here or read it on the website of the weekly newspaper "Die Zeit". [wpfilebase tag=file id=12 /]
Frequently asked questions
Frequently asked questions
Are pensioners required to file a tax return even without a request from the tax office?
Yes, pensioners are generally required to file a tax return if their taxable income exceeds the basic tax-free allowance (Grundfreibetrag). It is a common misconception that a return is only necessary upon explicit request by the tax office. The obligation arises independently from German tax law.
What changed for pensioners as a result of the Alterseinkünftegesetz (Retirement Income Act) of 2005?
The Alterseinkünftegesetz introduced deferred taxation of pensions in 2005. Since then, pensions have gradually become subject to higher taxation, while contributions to retirement provision are increasingly tax-deductible during the savings phase. As a result, many pensioners who previously did not have to file a tax return have become liable to pay tax.
Why have tax offices been increasingly active with pensioners since 2011?
Since 2011, the tax offices have systematically reconciled pension data with the reports submitted by pension insurance providers. This allows them to identify pensioners who have not filed a tax return despite being subject to tax. In many cases, requests for retroactive filing followed, sometimes covering several past years.
What consequences do retirees face if they have missed filing their tax return?
Retirees who failed to file despite being subject to tax liability must expect back assessments covering several years. In addition, late-filing surcharges and interest may apply. In severe cases, criminal tax proceedings for tax evasion can also be initiated.