(2022) What are contributions to agricultural pension funds?

These are contributions paid by a farmer for themselves, their spouse, and possibly for family members working on the farm, to build up their own funded pension scheme. Employees can enter contributions to agricultural pension funds and contributions to a voluntary statutory pension insurance. Contribution subsidies must be deducted.

In 2022, pension contributions are fully deductible up to 25.639 Euro for single persons and 51.278 Euro for married couples. However, these contributions only have a tax-reducing effect of 94%, i.e. a maximum of 24.101 Euro or 48.202 Euro.

The Federal Fiscal Court considers the statutory transitional regulations in connection with pension taxation and the deduction of pension expenses to be constitutional (BFH rulings of 19.5.2021, X R 33/19 and X R 20/21). However, it has pointed out that this does not apply to future pensioners. There could be a risk of double taxation.

The Federal Government has announced that the full deductibility of pension contributions during the working phase, planned for 2025, will be brought forward to 2023.