Taxes in Europe Database v2
The legal basis for imposing and determining the solidarity surcharge is the Act on measures to deal with inherited financial liabilities resulting from the unification of Germany, to provide a lasting foundation for reconstruction in the new Länder, to reorganise the system of federal revenue equalisation and to afford relief to public authority budgets (Act implementing the Federal Consolidation Programme of 23 June 1993, Federal Law Gazette 1993 I p. 944). The solidarity surcharge is levied in the form of a surtax as provided in Article 106 (1) No. 6 of the Basic Law.
The solidarity surcharge is imposed on the basis of the Solidarity Surcharge Act 1995 (SolzG 1995) in the version of 15 October 2002 (Federal Law Gazette 2002 I p. 4130), last amended by Article 6 of the Act Implementing the Recovery Directive of 7 December 2011 (Federal Law Gazette 2011 I p. 2592).
Federal Republic of Germany
Federal Republic of Germany
The surcharge applies to the same extent to all incomes without exception and is imposed uniformly on all taxpayers in accordance with their capacity to pay.
A general surcharge on wages tax, income tax, corporation tax and capital yields tax has been levied as of 1 January 1995 to finance the completion of German unification.
This surcharge is levied on the tax base at a rate of 5.5%.
Basis of assessment for the surcharge on income tax is the tax liability determined in assessment periods from 1995 onwards.
The surcharge on corporation tax is assessed on the corporation tax liability determined for assessment periods from 1995 onwards after deduction of any imputable or refunded tax, where the result is positive.
Where income tax or corporation tax prepayments are to be made for assessment periods from 1995 onwards, such prepayments will form the basis of assessment of the solidarity surcharge.
If income tax is withheld at source (wages tax, capital yields tax, withholding tax on income of non-residents), the basis of assessment is the amount of tax withheld as of 1 January 1995.
In the assessment for income and corporation tax, the solidarity surcharge imposed on prepayments and on wages tax and capital yields tax withheld at source will be allowed as a credit.
The solidarity surcharge is currently levied at 5.5 % of the relevant basis of assessment.
Super reduced rate
The advance payments of the solidarity surcharge must be made simultaneously with the advance payments fixed for the income tax or the corporation tax.
Solidarity surcharge is collected by the tax authorities of the Federal States (Länder).
Revenue from the solidarity surcharge accrues to the Federation.
No ESA95 code as it is included under wage tax, income tax, corporate income tax and capital yields tax.