What are royalties?
Fees are paid for copies of copyrighted works, which the Verwertungsgesellschaft Wort (VG Wort) distributes to authors as profit-related remuneration (royalties).
Can I claim my royalties independently or do I have to share them with my publisher?
Unlike in many other countries, the German copyright law does not allow the transfer of copyrights (except case of death). Publishers own a licence, but not the copyright as such. Due to this, under the German law authors still own the ultimate copyrights of their own publications and are able to claim the royalties for them.
Publishers can claim their part of the royalties at VG Wort under a separate distribution scheme. Of course, Parnassus can also assist with that and recommends that authors and publishers claim their share.
How high are the royalties exactly?
The royalty rates are determined annually and depend on the number of pages and co-authors. As a guide, the rate for an scholarly book published in 2023 was € 1,100 on average.
What exactly do I have to do to receive royalties?
We take care of everything. All you have to do is sign the licence agreement and post it.
What exactly are „scholarly publications“?
Scholarly publications are academic and non-fiction books, cartographic works, loose-leaf works and academic articles and contributions in scientific and non-fiction books or journals.
Are royalties taxable?
Royalties are usually regarded as part of an author’s income. Wether they are taxed or benefit from country-specific tax-free allowances depends on the author’s individual tax situation in his or her country of residence.
I do not live in Germany. Do I have to pay tax on royalties in Germany?
If you are neither resident nor ordinarily resident in Germany, you must pay a withholding tax of 15% of the remuneration plus 5.5% solidarity surcharge on the distributions in accordance with §50a EStG. VG WORT, as the party liable for the remuneration, is obliged to withhold the tax in this amount. Non-resident authors do not need to file a tax declaration in Germany as the tax is withhold by VG Wort.