Despite the difficult economic environment, especially for cultural and creative industries due to the Covid-19 pandemic, the social security contribution rate for artists (Künstlersozialversicherung), currently at 4.2%, will rise to 4.4% from 2021 onwards. The Federal Ministry of Labour and Social Affairs has already started departmental consultations with the aim of drawing up the draft of ordinance 2021 on social security contributions for artists.
However, thanks to the use of additional federal funds in the form of tax subsidies amounting to 23 million euro, it was possible to prevent the tax rate from rising to 4.7%.
This slight increase in the contribution rate for artists will avoid a disproportionate burden on the liquidity of companies subject to the levy, especially in the current economic crisis due the Covid-19. At the same time, solid state funding for social security for artists and publicists is still guaranteed.
What is the Künstlersozialversicherung (social insurance for artists)?
Through social insurance for artists, more than 190,000 artists and independent publicists are currently enrolled in public health, nursing care and pension insurances. Artists and independent publicists pay half of their social security contributions, just like normal employees. The other half is financed by a federal subsidy (20%) and the social security contribution of artists by companies that exploit artistic and journalistic achievements (30%). The artists’ social security contribution is levied as a contribution.
The tax rate is set annually by means of a ministerial ordinance (without cabinet decision) to be promulgated by the end of the previous calendar year. For example, the contribution rate for the calendar year 2021 is to be set by the end of December 2020. The basis of assessment is all fees paid to independent artists and publicists during the calendar year.