Arbeitnehmersparzulage (employee savings allowance) - Granting

The Arbeitnehmersparzulage (employee savings allowance) promotes the employee's asset building through agreed vermögenswirksame Leistungen (VL, capital-forming benefits). These are funds that the employer invests for the employee in a specific form of investment (e.g. a Wertpapier-Sparvertrag (securities savings contract) or a Bausparvertrag (building savings contract)). After consent, the following information is transmitted electronically to the Finanzamt (tax office) once the calendar year in which the capital-forming benefits were paid has ended: • the annual amount and type of investment of the VL, • the calendar year to which the VL is to be assigned, and • where applicable, the end of the Sperrfrist (lock-up period). The savings allowance amounts to 9% (for a Bausparvertrag or the direct use of the capital-forming benefits for housing construction) or 20 % (for so-called Beteiligungssparen (equity-participation savings)) of the amount of the capital-forming benefits. When two eligible contracts are concluded (e.g. a Bausparvertrag and a Wertpapier-Sparvertrag, the allowances are granted alongside each other. The Arbeitnehmersparzulage is determined annually by the Finanzamt as part of your Einkommensteuerveranlagung (income tax assessment) and, after the end of the Festlegungsfrist (fixing period, usually 7 years), is paid out as a lump sum to the investment institution.