Crediting the CEO salary to the pension payments for work in retirement had become such a tax conflict the Bundesfinanzhof also reached and is currently been decided by the Chief Financial judges in detailed guidelines with judgment of the 5.3.2008. The quintessence of this decision which are important points of reference for tax waterproof design you and your advisor, please scroll down. In particular, it is to consider whether you before continued Managing Director activity over a severance pay your pension out and a clear agreement about it beforehand meet tax not because of hidden profit distributions (vGA) clunk. You should discuss other alternative designs and their tax implications in time with your advisor. The central statements of the BFH decision of 5.3.2008 are: 1 commitment the pension must be made not by the departure from the CEO employment contract depending on be disbursed no Damage (vGA) occurs. In other words: pension payments and a Managing Director activity continued after the retirement fee not always mutually exclusive. 2. in the further work of the shareholder Executive Director after reaching the retirement age a regular and conscientious Managing Director would require but usually that toward the ongoing CEO references to the services. In other words: At the same time fully paid on CEO pay and retirement benefits exclude tax themselves. Source: