Social security and taxation

It is the responsibility of the grant recipients to contact MELA in order to arrange their pension coverage. In the case of workgroups or projects, this is the responsibility of the group or project leader.
Kuva: Joel Haapamäki

The 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 (€ 3 980 per year in 2020, € 4 032 per year in 2021).

It is the responsibility of the grant recipients to contact MELA in order to arrange their pension coverage. In the case of workgroups or projects, this is the responsibility of the group or project leader. MELA notifies the tax authorities directly of the grant recipient’s pension payments.

Further information on social security for grant recipients can be obtained from MELA: www.mela.fi

Taxation

Grants are tax exempt in Finland up to the amount equivalent to the Finnish state grants for artists (in 2020, € 23 376,45 per year). Please note that all the 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 make any tax deductions 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 recipient of a grant must declare it in the tax declaration.

Please consult the tax administration on the deductibility of expenses like pension payments, literature acquisition costs or travel expenses.

Further information of taxation matters regarding grants:

Finnish Tax Administration

Council of Finnish Foundations