Is the solidarity surcharge aka Soli finally history from 2021? The Federal Ministry of Finance has published the headline “We are abolishing the solidarity surcharge for almost everyone” on its website. After all, the solidarity surcharge 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 in the future. If the exemption threshold is only just exceeded, the so-called mitigation zone will apply, i.e. only part of the soli will be levied. In addition, the exemption limit and the mitigation zone have been increased significantly.
So far so good. Things are a bit more complicated in the case of short-term employment, such as extras. Since the tax office extrapolates daily wages 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 pay slips as usual. For example, the solidarity surcharge 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 the Soli with gross wages starting at €149.87 per day. However, these lower wage limits and those just above them are really only penny amounts.