Germany Upper House Considers Bill to Introduce Tax Allowance for Occupational Pensions
The German upper house of Parliament (Bundesrat) Nov. 21 accepted for consideration a bill to introduce a tax allowance for the promotion of occupational pensions.
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The bill includes measures to:
1) apply a maximum allowance of 159 euros (US$175) of monthly pension payments and one-off capital disbursements;
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2) allow beneficiaries whose pension began before 2020 or whose capital payment was less than a decade ago to benefit from the allowance; and
3) index the allowance to change annually according to the social security reference value. The law would generally take effect Jan. 1, 2020.
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