Is the solidarity surcharge finally history from 2021? The Federal Ministry of Finance headlines on its website “We are abolishing the Soli for almost everyone”. After all, the Soli is to be abolished completely for 90 percent of wage and income tax payers. For taxable income of up to 73,000 euros, no soli will be due at all in the future. If the exemption limit is only just exceeded, the so-called mitigation zone applies, i.e. only part of the soli is levied. The exemption limit and mitigation zone were also raised sharply.
So far so good. Things are a little more complicated for short-term employment such as extras. Since the tax office extrapolates daily allowances to a fictitious monthly income to determine the wage tax, it is quite possible, depending on the tax bracket, that the solidarity surcharge will appear on the wage slips as usual. For example, the Soli will continue to be levied on short-term taxpayers in tax bracket I with gross wages of €191.10 or more per day. Short-term employees in tax class VI, on the other hand, are asked to pay as little as €149.87 in gross wages per day. However, these wage floors and those just above them are really only penny amounts.
Federal Ministry of Finance: We are abolishing the Soli for almost everyone