Does filing a tax return affect my pension in the future. What is the difference between these two payments?

12th Aug 2020

Do you want to get a tax refund? Will that affect your pension?

If you worked abroad, you (or your employer) paid a portion of your income to the tax office. We call this “income tax”, because it is calculated from your gross income. You can legally receive part of your taxes, which you have paid, back, thanks to the tax law for foreigners working in a foreign country. Income tax and pension fund are two totally different payments.

Let's explain shortly:

Why can you get back part of your income tax?

This is because you have paid more on taxes than you were obliged to pay. Actually, your employer did, and now you can ask the tax office abroad to return this money to you. To do this, you should file a tax return. Shortly, no tax return, no tax refund. It is a legal procedure, done by tax specialists, who will help to prepare and file your income tax return abroad.

Why would you leave your money in a foreign tax office?

Aside from your income tax, you also pay some money to PENSION fund and medical insurance.

This money can NOT be refunded to you if you are an EU citizen. This means, that if you ask the tax office to return a part of your income tax, it has nothing to do with your pension. It will not influence your pension paid in the future, so you will not get paid less pension.

I want a tax refund