Teosto to provide COVID-19 financial support to more than 1,200 music authors and publishers
A total of 1,499 composers, lyricists, arrangers and music publishers applied for Teosto’s COVID-19 financial support in May. 1,250 applicants met the criteria for the support, and a total of nearly EUR 2 million in financial support will be provided. The support will be paid to applicants by the end of June.
The COVID-19 pandemic has significantly reduced the amount of royalties collected by Teosto. The special support being paid from the Teosto Fund is meant to mitigate these financial losses suffered by professional music authors, composers and music publishers during the pandemic. The support is meant to help make continuing one’s artistic work possible despite the fall in royalties.
A total of EUR 2 million in financial support was available in the second round of application (14–30 May 2021) for Teosto’s COVID-19 financial support. A total of 1,499 applications were submitted by the deadline, of which 1,250 were approved. 249 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 (in Finnish), the main categories being concerts and live events, commercial radio and 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 support is intended for creative and artistic work in the music industry.
The COVID-19 financial support is tax-free income for music authors
The amount of financial support granted depends on the amount of royalties paid to the applicant in the distribution categories above. The smallest amount of financial support is EUR 550 and the largest is EUR 10,000. All in all, support was granted in 12 categories. We will inform each applicant of our decision personally by email.
The applicants’ distribution information was automatically checked in Teosto’s system. After the checks, the 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.
The support will be paid to applicants by 30 June 2021. The support will be paid via the funds of Teosto’s member organisations (the Sibelius Fund of the the Society of Finnish Composers, the fund of the Finnish Music Creators’ Association and the fund of the Finnish Music Publishers Association).
COVID-19 financial support is a grant for artistic work. The applicant has no reporting obligation to the fund that paid the support.
Grants paid for the purpose of supporting artistic activities are tax-free income for music authors, subject to the conditions laid down in the relevant legislation (section 82 of the Income Tax Act). For music publishers, financial support for activities is taxable income (section 4 of the Act on the Taxation of Business Income).
A third round of application for COVID-19 financial support in the autumn
Teosto paid COVID-19 financial support for the first time in autumn 2020. At that time, a total of EUR 542,500 was paid in financial support.
This year, Teosto will pay COVID-19 financial support twice. A total of EUR 1,998,350 in financial support was paid this spring, and an application round for EUR 1 million in COVID-19 financial support is planned for the autumn.
The applications can still be found in the Klaavi system www.klaavi.fi
Advice about COVID-19 financial support until 9th, July, 2021: email@example.com and tel. +358 (0)9 6810 1112. Open Mon–Fri 10 a.m.–16 p.m.