Germany Artists Social Tender

Federal relief grant slows down the necessary increase for 2021 significantlyThe tax rate for artists social insurance will be 4.4 percent in 2021. Despite the difficult economic background especially for the culture and creative industries due to the corona pandemic the tax rate only needs to be increased slightly from the current 4.2 percent. The Federal Ministry of Labor and Social Affairs today initiated the participation of departments and associations in the draft of the 2021 artists social contribution regulation. The use of additional federal funds in the form of a relief grant of EUR 23 million prevented the tax rate from rising to 4.7 percent in 2021. An artists social security contribution rate at this low level prevents a disproportionate burden on the liquidity of the taxable company in the current crisis situation. At the same time the solid financing of the important social security for artists and publicists in the artists social insurance system continues to be guaranteed.What is artist social insuranceMore than 190000 self-employed artists and publicists are currently covered by the statutory health long-term care and pension insurance as compulsorily insured persons through the artists social insurance system. The self-employed artists and publicists like employees bear half of their social security contributions. The other half of the contribution is financed by a federal grant 20 percent and the artists social security contribution from companies 30 percent that utilize artistic and journalistic services. The artists social tax is levied as a contribution. The tax rate is set annually for the following calendar year. The assessment basis is all fees paid to independent artists and publicists in a calendar year. The artists social security tax regulation is a ministerial regulation without a cabinet decision. The ordinance must be promulgated in the Federal Law Gazette by the end of 2020 at the latest.