Social security, taxation and grant certificate

It is grantees’ responsibility to contact MELA to arrange pension coverage. If a grantee requires proof of grant payment, the project leader can download a PDF certificate from the online grant service.

SOCIAL SECURITY

The Farmers’ Social Insurance Institution (Maatalousyrittäjien eläkelaitos, MELA) provides pension, accident, and group life insurance coverage for grant recipients in Finland. Statutory insurance payments are approximately 15–20% of the monthly grant.

Kone Foundation will inform MELA of individuals or groups who have received funding for periods of four months or more and whose grants exceed the minimum level for pension payments (€4,032 in earnings per year in 2021). It is the grantees’ responsibility to contact MELA to arrange pension coverage.

Kone Foundation has not limited the amount of expenses of the personal monthly grant. You may deduct expenses of your personal monthly grant according to MELA’s guidelines.

MELA notifies the tax authorities directly of grant recipients’ pension payments.

It is important to note that grant recipients themselves must contact MELA regarding possible changes to their grants. Before making changes to payment schedules, we recommend that grant recipients inquire from MELA how these changes will affect their insurance coverage and, in particular, the length of the insurance period.

If a grantee with MYEL insurance goes on sick leave, they may be eligible for a MELA sickness allowance. Payment of the grant must be suspended during sick leave.

Further information on social security for grant recipients can be obtained from MELA at www.mela.fi. The material from the MELA info session held on 4 March 2021 is available here.

TAXATION

Grants are tax-exempt in Finland up to the amount equivalent to the Finnish state grants for artists (in 2022, €24,475.56 per year). Please note that all full annual grants awarded by Kone Foundation exceed this limit.

Kone Foundation grantees do not send a tax deduction card to the Foundation. The Foundation does not deduct any taxes from the grants, even when the amount of funding already paid to the recipient within the same calendar year exceeds the maximum tax-exempt amount. Kone Foundation notifies the Finnish tax authorities in January of the grants paid out during the previous year. The grant recipient must report it in their tax declaration.

Please consult the tax administration on the deductibility of expenses such as pension payments, books and materials and travel expenses.

TAXATION OF OTHER EXPENSES FOR INDIVIDUAL OR WORKING GROUP WITHOUT FINNISH BUSINESS ID

Kone Foundation annually reports the payments of other expenses in grant projects when the applicant is an individual or a working group represented by a project leader. In these cases, the other expenses will all be listed under the project leader and will be visible in the project leader’s pre-completed tax return.

The leader must then explain the other expenses online in MyTax (OmaVero).

FURTHER INFORMATION ABOUT TAXATION MATTERS REGARDING GRANTS

Finnish Tax Administration

Council of Finnish Foundations

GRANT CERTIFICATES

In most cases, the grant approval letter serves as a valid certificate that proves you have been awarded a Kone Foundation grant.

If the grantee requires proof of payment of the grant, the project leader can download a certificate in PDF format from the online grant service on the “Payment request” page for each grantee (Account info > small PDF icon below “Monthly grant recipient”).