Brief definition
The Solidarity Surcharge is one Supplementary charge for income tax and corporation tax. In the wage tax deduction procedure, it is – if it arises – applied as a surcharge to the Income tax raised.
The basis for calculation is the relevant income tax. The surcharge amounts to 5.5 % of this income tax.
In payroll, the solidarity surcharge appears as an additional deduction alongside income tax and, if applicable, church tax. It directly affects the Net wage out.
Basics
The solidarity surcharge is levied as a surcharge on income tax. In terms of income tax deduction, this means: it is directly linked to the calculated income tax.
- The basis for assessment is the respective income tax.
- The surcharge amounts to 5.5 % of income tax.
- It is withheld and remitted together with the wage tax.
Who pays the solidarity surcharge?
Since 2021, the solidarity surcharge no longer applies to the vast majority of taxpayers. Whether it is levied in individual cases depends on the respective tax assessment basis.
Demarcation
Solidarity surcharge and wage tax
The wage tax is the income tax withheld from wages. The solidarity surcharge is a percentage surcharge on this tax.
Solidarity surcharge and church tax
Church tax is only levied if church tax liability exists. The solidarity surcharge, on the other hand, is a federal supplementary levy.
Payroll Practice
In the billing run, the solidarity surcharge is automatically determined based on the calculated wage tax. Changes to the wage tax therefore regularly lead to changes in the solidarity surcharge.
Conclusion
The solidarity surcharge is a surcharge on income tax, where applicable. The correct determination of income tax as the basis for assessment and the consistent application of the statutory calculation logic are crucial for correct settlement.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
