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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;
  • 14,62 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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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;
  • 14,92 percent, if the author accumulate additionally for pension and contributes 2,4 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 2021, contributions cannot be calculated from a larger sum than 58 166,10 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).

Close

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;
  • 15,22 percent, if the author accumulate additionally for pension and contributes 2,7 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 2022, contributions cannot be calculated from a larger sum than 64 676,30 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 per year cannot be calculated from an amount, higher than 43 average wages:

  • In 2020 - 53 380,20 Euro;
  • In 2021 - 58 166,10 Euro.
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Yesif:

  • Your arrears of the social insurance contributions are not less than EUR 125 and do not exceed EUR 1,500;
  • You submit an Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian) to “Sodra”.

No, if recovery of arrears of the social insurance contributions has already been delegated to the bailiff.

 

CONDITIONS OF DEFERRAL

Amount of arrears, EUR

Term of deferral, months

Less or equal to 600

Up to 4

Greater than 600 but equal to or less than 900

Up to 6

Greater than 900 but equal to or less than 1,200

Up to 8

Greater than 1,200 but equal to or less than 1,500

Up to 12

 

TERMS:

  • Individuals may apply to “Sodra” division for the deferral of the contributions immediately after the date by which the annual income tax return must be submitted to the STI, i.e. after May 1.
  • Payment of arrears of the social insurance contributions can be deferred once per calendar year.
  • If your arears do not exceed EUR 1,500, “Sodra“ shall adopt the decision within 10 working days from the date of receipt of the application at “Sodra“ division.
  •  “Sodra“ division shall notify the insurant on the decision adopted within 5 working days from the date of the decision, submitting the decision to the personal "Sodra" account for the resident and policyholder.
  • The repayment of arrears of the social insurance contributions begins from the date of the decision to defer the payment of arrears of the social insurance contributions subject to the terms and conditions set out therein.

An Application for the deferral of contributions (contributions, interest, fines) may be submitted:

  • Online after logging to the "Sodra" personal account for the resident and selecting a free-form application and attaching a completed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian). The addressee must be chosen the branch of "Sodra" where you are registered as a policyholder;
  • By e-mail [email protected] (it is necessary to attach a completed and signed Application for the deferral of contributions (contributions, interest, fines) (in Lithuanian));
  • By mail. The completed and signed original application is sent to the branch of "Sodra" where you are a registered as a policyholder;
  • Upon arrival at the "Sodra" branch. You need to have an identity document with you, e.g. passport, identity card.

Important! If payment of the contributions debt has been deferred for you, but you fail to fulfil the terms of the agreement or fail to pay the current contributions, the agreement shall be terminated and the remaining debt and accrued interest on late payment are recovered. 

 

 Important due to extreme situation and quarantine period!

  • 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: 2022-01-04
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