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Solidarity Tax

Solidarity Tax Definition

A tax imposed for funding theoretically solidifying projects, usually for a short period of time. The tax acts in conjunction with income taxes and has to be paid by individuals, sole proprietors and corporate enterprises. The solidarity tax has been introduced in numerous countries, for example in Germany, where it was used to rebuild Eastern Germany. There taxpayers have to pay an additional 5.5% of their tax bill towards the solidarity tax.

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