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Press release Oberfinazdirektion Karlsruhe

Administrative implementation of the law on the reduction of the solidarity surcharge

From the beginning of 2021, the solidarity surcharge will no longer apply to most income taxpayers. It will only be levied if the income tax to be assessed as the basis of assessment for the solidarity surcharge exceeds the amount of €16,956 for single assessment or €33,912 for joint assessment. Above these limits, there is a "mitigation zone" in which the solidarity surcharge is gradually brought up to the full rate of 5.5%. The mitigation zone prevents persons whose income tax liability exceeds the exemption limit by only a few euros, for example, from being subject to the full solidarity surcharge rate immediately.

The legal situation described above will apply from the beginning of 2021 and thus also to the corresponding advance payments. In individual cases, the advance payments for the solidarity surcharge could not yet be fully adjusted during the transition period from the old to the new legal situation from 2021. In order to ensure that taxpayers who make advance payments for income tax and the solidarity surcharge do not have any advance payments for the solidarity surcharge set for the next advance payment date on 10 March 2021, the advance payments for the solidarity surcharge for 2021 will be reduced to €0 in a first step in the cases affected at Baden-Württemberg. In this case, all those affected will receive so-called advance payments for the solidarity surcharge for 2021. For this purpose, all those affected will receive so-called settlement notices.

In a second step, the advance payments for the solidarity surcharge are reassessed in cases in the "mitigation zone". The solidarity surcharge calculated for the entire year will be distributed over the advance payments of the following three quarters of 2021. These reassessments are being carried out at full speed.

The advance payments for 2021 will be offset against the final result with the income tax assessment for 2021 and are therefore only of a provisional nature. Depending on the individual case, there may be refunds or additional payments.

An enquiry or an application by the citizens is not necessary. However, those who transfer the advance payments by order should wait and check the receipt of the above-mentioned settlement notices in order to be able to adjust the transfer amount if necessary.

 

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