German Social Security Pensions

Some news for Canadian residents collecting German social security benefits. In January a German tax court ruled that the Canada-Germany tax agreement does not allow Germany to tax German social security benefits received by a resident of Canada. This would be a nice boost to those who have earned a German pension but now reside in Canada. However, the tax authorities in Germany have appealed the decision, meaning that until the matter is resolved, Germany will continue to withhold taxes on their social security benefits. We will keep tabs on this to see how it develops.

For more information, see the links below:

Ruling: http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/grmnslsc-eng.html

Taxation of German social security pensions:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/tx-gssp-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/grmny2005-eng.html

 

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