Teosto to pay COVID-19 financial support to nearly 1,300 music authors and publishers – more support is proposed for next year
In Teosto’s third round of COVID-19 financial support, more than EUR 1 million will be paid to composers, lyricists, arrangers and music publishers still adversely affected by the COVID-19 pandemic. Teosto received a total of 1,479 financial support applications, and 1,297 of these applications met the application criteria. The financial support will be paid to the applicants in early December. Teosto’s Board of Directors is proposing a fourth round of COVID-19 financial support for next spring.
The COVID-19 pandemic does not seem to be ending and music professionals will continue to be adversely affected by it for a long time. The special support paid from the Teosto Fund is meant to mitigate the financial losses caused by the fall in royalties during the pandemic. The support is intended for creative and artistic work in the music industry.
A little over EUR 1 million was available for Teosto’s third round (11–31 October 2021) of COVID-19 financial support. A total of 1,479 applications were submitted by the deadline, 1,297 of which were approved. 200 applicants did not meet the criteria for receiving financial support.
The criteria for receiving support were the following:
• Teosto membership
• The total amount of distributions paid during 2018–2020 must be at least EUR 1,500 (gross) for specific distribution categories, the main categories being concerts and live events, commercial radio and commercial television, background music, stage, cinema, Internet PVR services and Yleisradio. The application process took into account distribution categories that the COVID-19 pandemic has been estimated to affect negatively either directly or indirectly.
The COVID-19 financial support is tax-free income for music authors
The amount of financial support granted to an applicant depends on the total amount to be paid out as well as the applicant’s distribution amounts. Applicants’ distribution information was checked automatically in Teosto’s system. On the basis of these checks, decisions on financial support were made by a committee that was appointed by Teosto’s Board of Directors and included representatives of composers, lyricists, arrangers, music publishers and Teosto’s office.
For this round, the smallest amount of support to be paid is EUR 270. The largest possible amount of support is EUR 5,000. All in all, support was granted in 12 categories. We will inform each applicant of our decision personally by email.
The support will be paid to applicants by 10 December 2021. The support will be paid via the funds of Teosto’s member organisations (the Sibelius Fund of the Society of Finnish Composers, the Finnish Music Creators’ Association Fund and the Finnish Music Publishers Association Fund).
Teosto’s COVID-19 financial support is a grant for artistic work. It is tax-free income for music authors, subject to the conditions laid down in the relevant legislation (section 82 of the Income Tax Act). The maximum total amount of tax-free grants in 2021 is EUR 23,668.35. For music publishers, financial support for activities is taxable income (section 4 of the Act on the Taxation of Business Income). Applicants are not obligated to report how they used the support.
A fourth round of application for COVID-19 financial support is proposed for next spring
Teosto paid COVID-19 financial support for the first time in autumn 2020 and for the second time in summer 2021. In all, about EUR 3.5 million in support has already been paid out. The total losses sustained by the entire music industry as a result of the COVID-19 pandemic are expected to rise to nearly EUR 500 million in 2021.
Teosto’s Board of Directors has decided to propose to the December General Meeting the opening of a fourth round of application for COVID-19 financial support in spring 2022. The COVID-19 pandemic does not seem to be ending, and the worsened COVID-19 situation is still a source of uncertainty for the music industry. The pandemic’s impact on royalties is delayed, and this impact is expected to be felt at least until the end of 2022.