The associations are calling for an artist-friendly implementation of the new grants for cultural start-ups

It’s about the KSK and taxes

relaunch the cultural political culture

Prof. Christian Höppner, President of the German Cultural Council and General Secretary of the German Music Council. © DMR

Concerning the management of the new cultural induction grants, the relevant ministers still need to clarify the outstanding issues. The main focus here is the treatment of grants with regards to the KSK.

The Neustart Kultur Economic Stimulus Program aims to provide financial support to numerous creative freelancers during the crisis. In this context, among other things, scholarships were awarded to artists.

However, important details regarding the state of the grants at the artists’ social security fund (KSK) have not yet been definitively clarified.

Need for action in Scholz and Heil

This is the task of the Federal Ministry of Finance and the Federal Ministry of Labor, which is why the German Music Council, together with the Association of German Musicians (DTKV), the Association of German Music Schools (VdM) and composers German Association (DKV), are now contacting Federal Finance Minister Olaf Scholz and Federal Labor Minister Hubertus Heil directly.

The request from the music industry representatives is formulated clearly: Scholarships paid to beneficiaries should generally be tax free until 31 December 2022, explains Prof. Christian Höppner, Secretary General of the German Music Council.

The exemption from the KSK contribution obligation is particularly important in view of the average annual income of KSK policyholders in the field of music: because on 1 January 2021 it was only 13,085 euros. If people eligible for funding now had to pay additional KSK grants on scholarships, this meager income would be even lower.

Contributions as proceeds of artistic activity

Höppner also asks: “At KSK, scholarships must be treated as income, but they must not be subject to contributions, because scholarships must not be marginalized by additional fees in their crown-related bridging effect.”

If the KSK were to consider the grants as artistic work income, policyholders could acquire more pension points.

Temporarily suspend the de minimis limit

In addition, the people involved are working once again to ensure that KSK policyholders can carry out more non-artistic and autonomous activities until the end of the pandemic-related restrictions without running the risk of losing insurance coverage.

Up to now it has been regulated that these cannot exceed the marginal income limit of 450 euros. As many creative people are dependent on temporary earnings from non-artistic pursuits, DMR, DTKV and VdM already asked in February to welcome them in Crown times.

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