GroKo wants to abolish solidarity surcharge and final withholding tax

In addition to many other changes in tax law, the grand coalition plans to abolish the solidarity surcharge and the final withholding tax.

The longest period of government formation after a federal election has indeed resulted in a new grand coalition, and so taxpayers can expect some changes in tax law. Among the goals agreed in the coalition agreement is an entry into the abolition of the solidarity surcharge from 2021, which is to relieve around 90 % of taxpayers from the solidarity surcharge through an exemption limit. In addition, the new GroKo wants to abolish the final withholding tax because the establishment of the intergovernmental exchange of information also makes it possible to tax foreign income.