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Employee savings allowance Granting
The employee savings allowance promotes the accumulation of assets by employees through agreed capital-forming benefits (VL).
These are funds that the employer invests for them in a specific form of investment (e.g. securities savings contract or building society savings contract).
The savings allowance is:
- 9% of the amount of the capital-forming benefits (maximum 9% of EUR 470) in the case of a building society savings contract or the direct use of the capital-forming benefits for housing (i.e. residential use) or
- 20% of the amount of the capital-forming benefits (maximum 20% of EUR 400) in the case of so-called participation savings.
However, from 2024, you will only be entitled to this allowance if your taxable income does not exceed EUR 40,000 if you are assessed individually or EUR 80,000 if you are assessed jointly.
If two eligible contracts are concluded, one for residential use and the other for investment savings (e.g. a building society savings contract and a securities savings contract), the allowances are granted in parallel.
The employee savings allowance is determined annually by the tax office as part of your income tax assessment and paid to the investment institution in one lump sum after the determination period has expired (usually 7 years).
After the end of the calendar year, the financial institution (e.g. building society) transmits the necessary information electronically (with your consent) to the tax office
The employee savings allowance promotes the accumulation of assets by employees through agreed capital-forming benefits (VL). These are funds that employers invest for them in a specific form of investment (e.g. securities savings contract or building society savings contract).
Your employer invests capital-forming benefits for you in an investment form that is favored by law. You have consented to the data transfer required for the determination of the employee savings allowance and your taxable income does not exceed €40,000 or €80,000 if you are married.
With the relevant information in your income tax return (main form ESt 1 A), you regularly apply for the employee savings allowance to be assessed when you submit your income tax return to the tax office. The tax office determines the employee savings allowance. It is paid out
- on expiry of the blocking period prescribed for the respective type of investment,
- on expiry of the blocking and repayment periods specified in the Housing Bonus Act or in the Ordinance on the Implementation of the Housing Bonus Act,
- upon allocation of the building society contract or
- in cases of harmless disposal.
The application for the employee savings allowance must be submitted by the end of the fourth year after the savings year at the latest.
If the assessment of the employee savings allowance is rejected, you can lodge an appeal against the rejection notice.
You can find the tax office responsible for you via the tax office search of the Federal Central Tax Office:
The text was automatically translated based on the German content.
The employee savings allowance promotes the accumulation of assets by employees through agreed capital-forming benefits (VL). These are funds that employers invest for them in a specific form of investment (e.g. securities savings contract or building society savings contract).
Your employer invests capital-forming benefits for you in an investment form that is favored by law. You have consented to the data transfer required for the determination of the employee savings allowance and your taxable income does not exceed €40,000 or €80,000 if you are married.
With the relevant information in your income tax return (main form ESt 1 A), you regularly apply for the employee savings allowance to be assessed when you submit your income tax return to the tax office. The tax office determines the employee savings allowance. It is paid out
- on expiry of the blocking period prescribed for the respective type of investment,
- on expiry of the blocking and repayment periods specified in the Housing Bonus Act or in the Ordinance on the Implementation of the Housing Bonus Act,
- upon allocation of the building society contract or
- in cases of harmless disposal.
The application for the employee savings allowance must be submitted by the end of the fourth year after the savings year at the latest.
If the assessment of the employee savings allowance is rejected, you can lodge an appeal against the rejection notice.
You can find the tax office responsible for you via the tax office search of the Federal Central Tax Office:
The text was automatically translated based on the German content.