Apply for employee savings allowance Unfortunately this specification of service has not yet been completely translated.

The employee savings allowance is used to build the wealth of employees. It is a state contribution to capital benefits (VL). VL are cash benefits that your employer creates for you. Depending on the type of investment, they are no more than 400.00 euros or 470.00 euros per year. Unlike the employee savings allowance itself, they are included in the taxable wage. Your employer pays the VL directly into an investment account that you have set up. Often the employer provides a subsidy. The amount of the grant is determined by collective agreement, enterprise agreement, salary law or employment agreement. Note: The employer also pays agreed VL subsidies for employees who are not entitled to the employee savings allowance (e.g. because they exceed the income limits). The employee savings allowance is 9 percent of the annual VL (maximum 43.00 euros) for construction savings contributions, contributions to the acquisition of building and housing cooperative shares, contributions to housing savings contracts and construction finance contracts within the meaning of the Housing Premium Act, as well as for expenses for Manufacture, acquisition, extension, extension or debt relief of a residential building 20 percent of the annual VL (maximum 80.00 euros) for contributions to certain savings contracts for securities or other equity investments, securities purchase agreements and equity purchase agreements and equity contracts You can also enter into 2 different contracts (e.g. a building-saving contract and a securities purchase agreement). You can then receive the allowances side by side. Tip: Even if you do not receive a subsidy from your employer for capital-related benefits, you can claim the employee savings allowance. Ask your employer to withhold your contributions from your annual salary and transfer them to the investment account you have set up.

Certificate of your investment institution (Annex VL) (no documents are required for VL from 2017, the data will be transmitted electronically to the tax administration).


Preconditions
The prerequisites for the savings allowance are: The VL must be invested in eligible forms of investment and your taxable annual income must not exceed certain limits. Eligible are Construction savings contributions, contributions to the acquisition of building and housing cooperative shares, contributions to housing savings contracts and construction finance contracts within the meaning of the Housing Premium Act, as well as expenses for the production, acquisition, extension, extension or debt relief of a residential building up to the amount of 470.00 euro per year. Savings allowance can be claimed for these investments up to a taxable income of 17,900.00 euros (35,800.00 euros for co-assessed spouses/partners) Contributions to certain savings contracts for securities or other equity investments, to securities purchase agreements and equity purchase agreements and equity contracts up to EUR 400.00 per year. Savings allowance can be claimed for these investments up to a taxable income of 20,000.00 euro (40,000.00 euro for co-assessed spouses/partners) If you are entitled to tax allowances for children (per child and parent EUR 3,624.00, for 2017: EUR 3,678.00, for 2018: EUR 3,714.00), these allowances reduce the taxable income when examining the entitlement to the allowance, even if the income tax setting the child benefit was more favourable. If both spouses/registered partners are employed as employees, both can claim the savings allowance for their own VL. Tip: Does your income exceed the above limits, but are within the income limits for the housing premium (EUR 25,600.00, for co-assessed spouses/partners 51,200.00 euro)? Then you can claim paid VL, which has been included in a building savings contract, the acquisition of building and housing cooperative shares, a housing savings contract or a construction finance contract, as your own deposits for the granting of the housing premium.
At the end of each calendar year, you will receive a certificate of deposited VL ("Appendix VL") from your investment institution. This allows you to apply for the employee savings allowance with the tax office as part of your income tax return. You can also submit the application independently of the income tax return; forms for income tax return shall also be used for such an application. The tax office in whose district you live is responsible. New procedure from the 2017 savings year : The investment institution will transmit the VL data to the tax administration by 28 February of the following year if you have consented to the transfer of data. This consent is a prerequisite for the entitlement to the employee savings allowance and is deemed to have been granted if your investment institution informs them of this in writing and you do not object in writing within a period of four weeks after receipt of this information. The investment institution informs you about the content of the transmitted data. As of 2017, you will no longer receive an investment VL from your investment institution. The forms for the income tax return must continue to be used for the application for an employee savings allowance. In principle, you will only receive the fixed employee savings allowance after expiry of the respective blocking period or repayment period, or after the allocation of the building-saving contract. Exception: Savings allowance for expenses for the production, acquisition, extension, extension or debt relief of a residential building is paid without special waiting periods. In certain cases (e.g. unemployment, incapacity for work), the fixed employee savings allowance may be paid out early.

Responsible for the content
Hessian Ministry of Finance

Last update or date of publication
29.07.2021