Solidarity Surcharge in Germany

Information about the German tax system by SH+C Munich and Regensburg

With the reunion of the German Democratic Republic and the Federal Republic of Germany in 1990 the German government invented the solidary surcharge. It was introduced to support the economical recovery of the former GDR.

The base for calculating the solidary surcharge is the income tax and the corporate tax. The rate of solidary surcharge is 5.5% of the income tax/corporation tax.

The solidarity surcharge on the withholding tax will be refunded to foreign shareholders, but not the solidarity surcharge on the corporate income tax paid by a German corporation.