Ford factory in Saarlouis: church tax exemption for abandonment payments

Ford factory in Saarlouis: church tax exemption for abandonment payments


Following the closing of the Ford plant in Saarlouis, many workers have questions about the church tax on severance pay. The Diocese of Trier offers options to limit or even eliminate this tax. If employees receive severance pay, they usually have to pay 9% church tax, as this is considered extraordinary income in tax law.

However, there is an option to submit a request for exemption or limitation of church tax. In the Diocese of Trier, applicants can be exempted up to 50% of their taxes. All that is required is an informal written application and an income tax assessment. If approved, a waiver will be granted. Alternatively, the tax burden can be reduced by reduction if it exceeds 4% of the total taxable income.

However, it is important to note that the exempted church tax may result in an excess of refund in the year of refund, which results in a higher tax burden in the following year. Applicants should therefore consider their expected income and specific planned expenses and, if necessary, seek tax advice.

Applications can be submitted to the General Vicariate of the Bishops of Trier with a copy of the income tax assessment. More information is available at The Diocesan website is available (click here).