Creatives database
Grants and Taxation

Taxation of Grants for Artists in Finland

The taxation of grants received by an artist depends on three factors:

  1. The purpose of the grant (working grant, project grant, or mixed-form grant).
  2. The entity awarding the grant (public body or private entity).
  3. The total annual amount of grants received.

Types of Grants

1. Working Grant

A working grant is intended to finance an artist’s normal cost of living, including housing, clothing, food, and leisure expenses. Common types of working grants include:

  • State artist grants (6 months to 5 years).
  • Public display grants.
  • Annual grants awarded by private foundations for artistic work.

Taxation:

  • Public body grants (e.g., Arts Promotion Centre Finland) are tax-exempt.
  • Private foundation grants (e.g., Finnish Cultural Foundation) are tax-exempt only up to a certain limit.

2. Project Grant

A project grant is awarded for a specific purpose, such as covering travel or exhibition costs.

Taxation:

  • A project grant is not taxable if fully used for its intended purpose, provided the artist can submit receipts covering the entire amount.

3. Mixed-Form Grant

A mixed-form grant includes both a working grant and a project grant in the same award. The recipient must clarify to the tax authorities how much of the grant was used for living expenses (working grant) and how much for specific projects (project grant).

Who Awarded the Grant?

The grant’s taxation depends on the awarding entity:


1. Public Bodies (Tax-Exempt Grants)

Grants awarded by the following public bodies are fully tax-exempt:

  • State entities (e.g., Arts Promotion Centre Finland, state research councils).
  • Regional arts councils and federations of municipalities.
  • Nordic Council, Kela, Bank of Finland.
  • Evangelical Lutheran Church of Finland, Finnish Orthodox Church.

Note: Grants from foreign states or foreign public bodies are not considered tax-exempt under Finnish law.


2. Private Entities (Partially Taxable Grants)

Grants awarded by private entities (such as foundations and associations) are tax-exempt only up to a certain limit. Private entities include:

  • Finnish Cultural Foundation
  • Alfred Kordelin Foundation
  • Swedish Cultural Foundation in Finland
  • Oscar Öflunds Stiftelse
  • State universities and colleges (treated as private entities for tax purposes).

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Taxation of Grants from Private Entities

Grants awarded by private entities are taxable if their total sum (after deducting allowable expenses) exceeds the amount of the state artist grant.


Tax Calculation Example:

Annual total sum of grants and awards
(grants from public bodies + grants from private entities + scholarships + Nordic Council grants + student grants + awards)
− allowable expenses
= annual state artist grant amount (in 2017: €20,309.40)

Important:

  • Project grants are not included in this calculation if the artist can provide receipts covering the full amount.

Declaring Grants on the Tax Form

  • All grants must be reported on the tax return, including scholarships and awards.
  • Artists must specify the type of grant (working, project, or mixed-form).
  • If a grant is not reported correctly, the tax authorities may classify it as taxable income or incorrectly deduct expenses from it.
  • A grant is declared as income in the tax year in which it was available for withdrawal, not when it was actually withdrawn.

Further Information (in Finnish)