Introduction of the Solidarity Surcharge
The Solidarity Surcharge (Soli) was introduced in Germany in 1991 to cover the costs of German reunification and other state financing needs. Companies are affected by this tax as they must pay a solidarity surcharge on their corporate tax.
Assessment Basis
The solidarity surcharge is levied on the corporate tax paid by corporations (such as GmbHs and AGs) in Germany. It amounts to 5.5% of the corporate tax. Thus, the solidarity surcharge is not an independent tax, but an additional charge on the tax burden.
Solidarity Surcharge for Corporations
Corporations in Germany pay a corporate tax of 15%. The solidarity surcharge is levied on this tax burden and amounts to 5.5% of the corporate tax. Example: If a company pays a corporate tax of 100,000 euros, the solidarity surcharge is 5,500 euros, which increases the total tax burden.
Development of the Solidarity Surcharge
Since its introduction, the solidarity surcharge has been a central source of revenue for the German state. However, in 2021, the Soli was abolished for a large portion of taxpayers in Germany. Companies, especially corporations, still have to pay it. The solidarity surcharge remains a relevant charge for companies that pay corporate tax.
Exceptions and Future Developments
There are discussions about whether the solidarity surcharge will also be abolished for companies in the future. However, there are currently no concrete plans to abolish the Soli for companies. Therefore, companies should continue to expect this additional charge on their corporate tax.