Germany MOF Posts FAQs on Individual Income Tax Incentive for Retirement Age Employees

The German Ministry of Finance March 16 posted online FAQs on the individual income tax active pension incentive for retirement age employees, which entered into force Jan. 1. Topics covered include that: 1) the incentive applies to wage payment periods ending after Dec. 31, 2025, and to other remuneration, like bonuses, accruing after that date; 2) the incentive is a monthly tax-free allowance of 2,000 euros (US$2,302), for employees with limited and unlimited tax liability that have reached the standard retirement age of 67, and whose employment is subject to specified social security contributions; 3) the exclusion from the allowance ...