Employee savings allowance
In Germany, the employee savings allowance (ANSpZ) is a state-granted money allowance to promote the accumulation of assets by employees . It is a state subsidy for capital-building benefits (VL), i.e. cash benefits that the employer invests for the employee.
The legal basis of the employee savings allowance can be found in the Fifth Capital Formation Act and in the Ordinance Implementing the Fifth Capital Formation Act. The first law on capital formation was passed in 1961, further amendments followed in 1989 and 1994.
The following forms of investment are permitted for capital formation benefits:
- corporate forms of savings such as equity funds or employee equity participation
- Company pension scheme (not supported by employee savings allowance)
- Building loan agreement
- Loan repayment for owner-occupied property
- Life insurance (not supported by employee savings allowance)
- open-ended mutual funds
- Bank savings plan (not funded by employee savings allowance )
- Business credit in registered cooperatives (EG)
Entitlement to employee savings allowance
An employee is entitled to employee savings allowance if his taxable income does not exceed the following amounts:
- 17,900 euros for single people
- 35,800 euros for a joint assessment of spouses / life partners
and the capital-forming benefits are used for housing purposes (e.g. building society savings contracts).
The following income limits apply to other forms of investment:
- 20,000 euros for single people
- 40,000 euros for a joint assessment of spouses / life partners
The taxable income in the calendar year in which the capital-forming benefits were invested is decisive. The entitlement to employee savings allowance arises at the end of the calendar year in which the capital-building benefits were invested. However, the employee savings allowance is only due for payment
- upon expiry of the blocking period prescribed for the respective type of investment,
- with the expiry of the blocking and repayment periods specified in the Housing Premium Act or in the Ordinance for the Implementation of the Housing Premium Act,
- with allocation of the home loan and savings contract or
- in cases of non-prejudicial disposal.
When calculating the taxable income, child allowances are to be deducted from income in accordance with Section 32 (6) EStG. In the 2018 calendar year, this amounts to EUR 3,714 per child for single persons and EUR 7,428 for spouses assessed together.
The payment of the employee savings allowance requires a six- or seven-year commitment period. However, this does not mean that deposits have to be made over the entire term.
Upon written request from the employee, the employer must conclude a contract on the capital formation of parts of the wages. Capital-building benefits are only funded if the employee can freely choose the type of capital-building investment and the company or institute at which it is to be made.
From January 1, 2017, the employer only has to certify the investment of asset-forming benefits electronically (Section 13 (1) of the 5th VermBG, BMF letter of December 16, 2016).
Capital-forming benefits and collective agreements:
In many industries there are collective agreements on capital-building benefits. These contracts stipulate that the employer bears the capital-forming benefits in whole or in part, provided that the employee concludes a corresponding contract. These benefits are paid by the employer regardless of the employee's entitlement to the employee savings allowance (i.e. also to employees above the income limit).
Amount of the employee savings allowance
The employee savings allowance according to Section 13 (2) VermBG
- 20 percent of the following capital-building benefits, limited to a maximum of € 400 per year
- Employee savings contributions based on a savings contract for securities or other investments
- Employee expenses based on a securities purchase agreement
- Employee expenses based on a participation contract (Section 6) or a participation purchase agreement
- 9 percent of the following capital-building benefits, limited to a maximum of € 470 per year
- Employee expenses in accordance with the provisions of the Housing Premium Act
- Expenses of the employee for the construction, acquisition, expansion or expansion of a residential building located in Germany or a condominium located in Germany, for the acquisition of a property located in Germany for the purpose of housing construction, etc. a.
The two allowances (20% and 9%) can be claimed side by side. Overall, capital-forming benefits of up to EUR 870 per year can be benefited from the employee savings allowance.
Tax and social security treatment of the employee savings allowance
The employee savings allowance belongs neither to the income within the meaning of the Income Tax Act nor to income ( wages ) within the meaning of social insurance and the Third Book of the Social Code.
Responsibility of the tax offices
The employee savings allowance is set on application by the tax office responsible for taxing employees based on income . The determination of the employee savings allowance must be applied for regularly with the income tax return, but can also be applied for separately. The employee savings allowance to be determined must be rounded up to the next full euro amount. The employee must prove the capital-forming benefits by means of a certificate from the investment institute. The tax offices are responsible for administering the employee savings allowance. The employee savings allowance is paid from the income to wage tax.
The application for employee savings allowance must be submitted by the end of the fourth year after the savings year at the latest. This application deadline applies for the first time to capital formation payments that were invested from January 1, 2007, because the two-year preclusion period has not yet expired.
Central office for employee savings allowance and housing bonus
At the Central Office for Employee Savings Allowance and Housing Premium [ZANS], as part of the KONSENS project of the same name, the institutes' reports on harmless / partially / and fully damaging dispositions of contracts for employee savings allowance are administered for all federal states. The exchange of data with the institutes and the 16 federal states ensures on a monthly basis that the employee savings allowance is paid out on time. ZANS is part of the tax administration of the State of Berlin.
Legal information and questions about the individual payment of the savings allowance and the housing bonus can and may only be answered by the responsible tax office that set the savings allowance.
|year||Expenditures in € million|
The expenses shall be shared equally (42.5%) of the federal government and the states , as well as 15% of the respective communities .
- Michael Thöne, Christian Bergs, Thilo Schaefer: Employee savings allowance . In: Financial Research Institute at the University of Cologne et al. (Ed.): Evaluation of tax breaks . tape 3 (evaluation reports), 2009, p. 599-644 ( PDF, 2.0 MB ).
- Federal Ministry of Labor and Social Affairs (Ed.): Employee equity participation - models and funding channels . 2013 ( PDF, 2.3 MB ).
- 5. Asset Creation Act (legal basis)
- Implementation Ordinance VermBDV (legal basis)
- BMF letter of December 16, 2016