Social security, taxation and grant certificate

It is the responsibility of the grant recipients to contact MELA in order to arrange their pension coverage. If the grantee requires proof of the payment of the grant, the project leader can download a PDF certificate on the online grant service.
Kuva | Image: Ilona Partanen

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

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

Further information on social security for grant recipients can be obtained from MELA: www.mela.fi. The material of the Mela info 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 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

Grant certificate

In most cases, the grant approval letter is also a valid certificate of the grant.

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