Annex AV (pension section of the German tax return): entering the Altersvorsorgedepot in your tax return

What is Annex AV?

Annex AV (“AV” stands for Altersvorsorge, retirement provision) is an additional page of the income tax return. It is where all contributions for which the state grants a subsidy are entered: so far the Riester contributions, and from 2027 also the contributions to the Altersvorsorgedepot (Germany’s state-subsidized retirement investment account). On the basis of these entries the tax office checks whether the special expenses deduction or the Allowances is more favourable, the so-called Günstigerprüfung (more-favourable-treatment check).

Who has to fill in Annex AV?

• Anyone who pays into a certified Altersvorsorgedepot and wants to use the tax advantage.
• For married couples with separate contracts, each partner individually.
• Even if you “only” claim the basic allowance , you should submit Annex AV, because otherwise the tax office will not carry out the more-favourable-treatment check at all.

If you pay in but do not submit Annex AV, you lose the potential tax advantage. The allowances are still paid out (via the ZfA), but no comparison with the special expenses deduction takes place.

The provider’s certificate, the key document

You do not have to add up the figures for Annex AV yourself. Every Altersvorsorgedepot provider is legally required to send you an annual tax certificate by the end of February of the following year (on paper or as a PDF download).

The certificate shows:

• the amount of your own contributions in the previous year
• the amount of allowances received (basic allowance, child allowance, career starter bonus)
• contract number and provider ID for the ZfA data matching
• a note that the data is transmitted electronically to the tax office

Step-by-step instructions

1. Have the provider’s certificate to hand.
2. In ELSTER or in your tax software open Annex AV.
3. Enter the contract number and provider. Both are at the top of the certificate.
4. Enter your own contributions (line in Annex AV: “Geleistete Altersvorsorgebeiträge”, retirement provision contributions paid).
5. Enter children for whom child benefit is received (this determines the child allowance).
6. Social security number must be entered once; it is needed for the matching with the ZfA.
7. Submit. The more-favourable-treatment check runs in the background.

Most tax programs (ELSTER, Wundertax, Smartsteuer, taxfix) have a wizard for Annex AV that takes the field entries from the certificate.

How the tax office carries out the more-favourable-treatment check

The tax office works through two options:

• Option A: You keep the allowances, with no additional tax deduction.
• Option B: You get the special expenses deduction (the contribution amount reduces your taxable income) and the allowances are offset against it.

The tax office automatically selects the model with the greater benefit and notes this in the tax assessment. The allowances themselves stay in the securities account in both cases; they are not reclaimed.

Common mistakes with Annex AV

• Forgetting Annex AV. A classic beginner’s mistake, often noticed only when the tax assessment arrives. Submitting it late is usually possible, but costs time.
• Not entering the children. Without the child entries, the child allowance is not included in the more-favourable-treatment check.
• Overstating your own contributions. Only contributions up to the subsidy ceiling of €1,800 a year are recognized; anything above that is disregarded.
• Wrong contract number. Typos here cause the matching with the ZfA to fail.
• Not keeping the certificate. If questions come up later, you have to request it from the provider again.

Real-life examples