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I work according to an authorship agreement / want to employ a person according to an authorship agreement

Persons who sign an authorship agreement and receive royalties are compulsorily insured by state social insurance and compulsory health insurance.

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You have to submit a 13-SD SDC notice to “Sodra” indicating the amount of the remuneration and the estimated VSD contributions. The message is provided via internet.

 

  Important! The notification should indicate the author's or artist's employment and its type , meaning whether the author or performer is a working person. From this, VSD fee rates apply. This part is filled in the A5 field of the 13-SD form.

It has two different codes:

  1. 01 - An author with an employment / service relationship.
  2. 02 - An author not having a job / service relationship.
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Depending on whether the author is working with the same employer (according to an employment contract or as a public servant) from whom he receives income under an authorship agreement, he has different rates of contribution, different tax base, and contribution “ceiling”.


If the author works FOR THE SAME EMPLOYER (according to an employment contract or as a public servant) from whom he receives income under an authorship agreement, he is compulsorily insured with the following insurance after signing the authorship agreement:

  •  Pensions.
  •  Illness (sickness).
  •  Maternity.
  •  Unemployment.
  •  Social insurance for accidents at work and occupational diseases.
  •  Compulsory health insurance.

 

The following rate applies for authors of this type in the standard case (whenever the policyholder belongs to the I group of policyholders):

  • 20,95 % (19.5% is deduced from the insured person's income; the insurer pays a contribution of 1.45% at his/her own expense).

 Contributions are paid on all income, received under a copyright contract.


If the author is NOT EMPLOYED under an employment contract and is not a public servant FOR THE SAME EMPLOYER, from whom he receives income under a copyright agreement, he is compulsorily insured with the following insurance after signing the authorship agreement:

  • Pensions.
  • Illness.
  • Maternity social insurance.
  • Health insurance.

VSD contribution rates:

  • 12,52 percent;
  • 14,32 percent, if the author accumulate additionally for pension and contributes 1,8 percent;
  • 15,52 percent, if the author accumulate additionally for pension and contributes 3 percent.

PSD contribution rate:

  • 6,98 percent.

The insurer does not have to pay neither PSD or VSD contributions (he have to calculate them from the employee's salary).

  During 2019, contributions cannot be calculated from a larger sum than 48 856,60 Euro (43 VDU). Contributions are paid from 50% of the income received.

  If the author has the status of an artistic creator, then contributions are always paid from 50% of the estimated remuneration if the author of this type is of working age (from 16 years old to the retirement age).

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Depending on whether the author is working with the same employer (according to an employment contract or as a public servant) from whom he receives income under an authorship agreement, he has different rates of contribution, different tax base, and contribution “ceiling”.


If the author works FOR THE SAME EMPLOYER (according to an employment contract or as a public servant) from whom he receives income under an authorship agreement, he is compulsorily insured with the following insurance after signing the authorship agreement:

  •  Pensions.
  •  Illness (sickness).
  •  Maternity.
  •  Unemployment.
  •  Social insurance for accidents at work and occupational diseases.
  •  Compulsory health insurance.

 

The following rate applies for authors of this type in the standard case (whenever the policyholder belongs to the I group of policyholders):

  • 20,95 % (19.5% is deduced from the insured person's income; the insurer pays a contribution of 1.45% at his/her own expense).

 Contributions are paid on all income, received under a copyright contract.


If the author is NOT EMPLOYED under an employment contract and is not a public servant FOR THE SAME EMPLOYER, from whom he receives income under a copyright agreement, he is compulsorily insured with the following insurance after signing the authorship agreement:

  • Pensions.
  • Illness.
  • Maternity social insurance.
  • Health insurance.

VSD contribution rates:

  • 12,52 percent;
  • 14,62 percent, if the author accumulate additionally for pension and contributes 2,1 percent;
  • 15,52 percent, if the author accumulate additionally for pension and contributes 3 percent.

PSD contribution rate:

  • 6,98 percent.

The insurer does not have to pay neither PSD or VSD contributions (he have to calculate them from the employee's salary).

  During 2020, contributions cannot be calculated from a larger sum than 53 380,20 Euro (43 VDU). Contributions are paid from 50% of the income received.

  If the author has the status of an artistic creator, then contributions are always paid from 50% of the estimated remuneration if the author of this type is of working age (from 16 years old to the retirement age).

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Contributions for persons who receive income under an authorship agreement are paid on the day as of settlement with the author.

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The payment details must include the payment code. It will vary depending on the type of author.

 

When paying for the AUTHORS, to whom you are paying remuneration according to authorship agreements (and the author is NOT WORKING), the payment code is - 289, if you pay due interest, the code will be 290, if you are paying penalties for unjustly reduced contributions, the code is - 291.

 

When paying for the AUTHORS, to whom you are paying remuneration according to authorship agreements (and the author IS WORKING), the payment code is - 301, if you pay due interest, the code will be 302, if you are paying penalties for unjustly reduced contributions, the code is - 303.

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If the author does not have an employment relationship, the contributions cannot be calculated from an amount, higher amount than:

  •  In 201948 856,60 Euro (43 VDU) during a year.
  •  In 2020 - 53 380,20 Euro (43 VDU) during a year.
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Self-employed persons who pay for social security contributions for themselves, on the payment of social security contributions up to a default payment of up to EUR 1 500, may apply to the “Sodra” section with the request to defer the payment of social security arrears. 
“Sodra” department shall, at the latest within 10 working days of receipt of the request, take a decision to defer or postpone the payment of the social security contributions. In this way, the payment of social security contributions may be delayed once per calendar year, subject to the following conditions: 

  • When social security contributions indebtedness is less than or equal to EUR 600, the social security contribution arrears are deferred to up to 4 months; 
  • In the case of social security contributions exceeding EUR 600 but less than or equal to EUR 900, up to a maximum of 6 months; 
  • In the case of social security contributions exceeding EUR 900 but less than or equal to EUR 1 200, up to a maximum of 8 months; 
  • When social security contributions indebtedness exceeds EUR 1 200, but is equal to or less than EUR 1 500, up to one year. 

The arrears of social security contributions start with repayment of the decision to defer payment of the social security arrears in accordance with the terms and conditions set out therein. The compartments shall inform the policyholder in writing of the decision taken within 5 working days of the decision. 
 
Persons may apply to the ‘Sodra’ department on deferral of contributions as soon as possible after the date on which the annual return declaration has to be submitted, i.e. after 1 May.

 

Important! Self-employed persons may not pay compulsory health insurance (CHI) contributions during an emergency and quarantine period and defer their payment for 2 years.

These persons who have not paid CHI contributions during an emergency declared by the Government and during quarantine will be required to pay these contributions for the said period within 2 years from the day of the emergency and quarantine cancellation.

If self-employed persons fail to pay CHI contributions within the set time limit when they have been provided with personal health care services within the set time limit, they will be required to compensate for the damage caused to the budget of the CHI Fund.

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Update date: 2020-04-16
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