Other income (Germany)

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In Germany, other income belongs to the seven types of income named in Section 2 (1 ) EStG and counts as surplus income . The legal basis of the other income is § 22 and § 23 EStG.

Examples of other income

Income from recurring payments

This mainly includes income from pensions.

Income from maintenance payments

Income from maintenance payments ( Section 22 No. 1a EStG), insofar as the provider claims them as special expenses.
The link to the special expenses mentioned in § 10 EStG makes it clear that by no means all maintenance payments are taxable. Rather, Section 10 (1a) No. 1 EStG only covers maintenance payments that a spouse provides as separation maintenance and which he claims as special expenses with the consent of the recipient . Only with this consent does the recipient bring about his own tax liability according to § 22 No. 1a EStG, which he will only do if he has been promised to compensate for the tax burden.

Income from private sales

Private sales are regulated in Section 23 EStG. From 2009, the sale of securities is no longer included, but the sale of real estate and other economic goods (art, precious metals, jewelry, etc.) can still trigger a tax payment. Daily use items are exempt from taxation. There is an exemption limit of 600 euros.

Other income

In § 22 No. 3 EStG, income from services that cannot be allocated to any other type of income is regulated. A typical example is the occasional (insurance) mediation. Losses from these transactions cannot be offset against other income, they can only be offset against profits of the same type. Section 22 No. 3 EStG also covers the rental and leasing of movable property. A typical example is the rental of a motor vehicle by a private individual, since the rental and leasing income does not include the rental of movables. The income is not taxable up to an amount of less than € 256 in a calendar year. This is an exemption limit, which means that if you earn EUR 256 per calendar year, the entire amount must be taxed.

Members' salaries

In § 22 No. 4 EStG, the taxation of parliamentary salaries is included. The regulation applies both to payments under the Members' Act and the corresponding laws of the federal states as well as to members of the European Parliament. You are entitled to the pension allowance in accordance with Section 19 (2) sentence 3 EStG.

Other pensions

Riester pensions, pension funds, pension funds and direct insurance are taxed in accordance with Section 22 No. 5 EStG. In contrast to statutory pensions, no tax-free amount is deducted as a percentage. 102 euros are inclusive for those pensions related expenses deducted.