Soldarity surcharge – 2021 is over …!
Around 90 percent of taxpayers in the country will no longer have to pay the solidarity surcharge from next year. The supplementary tax on income and corporation tax introduced in 1991 was originally intended to be levied only for one year. Among other things, the income generated by the “Soli” should flow into the financing of German unity. Now, after almost three decades, for most of them the time has come for the surcharge to be dropped.
In future, it will only be levied if the income tax is more than 16,956 euros / year (1,413 euros / month) or more than 33,912 euros / year (2,826 euros / month) in the case of joint assessment (or in wage tax class III). The exemption limit relates to the annual taxable income and is around 61,700 euros annual income for single persons and 123,400 euros for couples taxed together. This is followed by a sliding zone in which the “solos” are on average below the current 5.5 percent. Only with a monthly gross income of around 9,000 (wage tax class I) or 17,000 euros (wage tax class III) will the current maximum rate be reached again.
Lots of text that can be broken down into a very simple message:
In January you will have noticeably more money available. Money that you can either consume or devote to solving larger challenges.
The four biggest goals for all of us have remained the same for many years:
• Adequate old-age provision, which may even make it possible to retire early, so that one also has something from retirement;
• a sufficiently high level of security for one’s own workforce;
• Financial means in order to be able to be cared for as long as possible at home and professionally, even in the case of care;
• optimal health care.
With the free funding, you can at least take a big step in the right direction. We would be happy to show you what options there are for you.
Your ANCORA team!
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