The employee savings allowance promotes the employee's capital formation through agreed capital-forming benefits (VL). These are funds that the employer invests for the employee in a specific form of investment (e.g. securities savings contract or building society savings contract).

The following information is transmitted electronically to the tax office after the end of the calendar year in which the capital-forming benefits were paid, subject to consent:

• the annual amount and type of investment of the VL,
• the calendar year to which the VL are to be allocated and
• the end of the blocking period, if applicable.

The savings bonus is 9%(in the case of a home loan and savings contract or the direct use of capital-forming benefits to build a home)
or
20% (for so-called participation savings)of the amount of the capital-forming benefits.

Iftwo eligible contracts are concluded (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).

The employee savings allowance promotes the employee's capital formation through agreed capital-forming benefits (VL). These are funds that the employer invests for the employee in a specific form of investment (e.g. securities savings contract or building society savings contract).

The following information is transmitted electronically to the tax office after the end of the calendar year in which the capital-forming benefits were paid, subject to consent:

• the annual amount and type of investment of the VL,
• the calendar year to which the VL are to be allocated and
• the end of the blocking period, if applicable.

The savings bonus is 9%(in the case of a home loan and savings contract or the direct use of capital-forming benefits to build a home)
or
20% (for so-called participation savings)of the amount of the capital-forming benefits.

Iftwo eligible contracts are concluded (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).