On 14 November 2019, the lower house of the parliament adopted the draft bill on the reduction of the solidarity surcharge.
The aim of the draft bill is the reduction of the 5.5% solidarity surcharge on corporate income tax liabilities that was implemented in 1995 to finance Germany’s reconsolidation with effect from the year 2021. The draft bill would result in an effective abolition of the solidarity surcharge for approximately 90% of the taxpayers.
However, the bill is still subject to the approval of the Bundesrat (Federal Council).
