Reporting the project funding

As a rule, project fundings are taxable income. Project fundings can be applied for from various bodies at national, regional and local level. This is based on the provisions governing the Swedish Arts Grants Committee’s project fundings.

The project funding is paid to the applicant artist, who in turn is responsible for paying any fees or salaries to the other participants as well as other expenses including materials, rent, administration costs and employer’s social security contributions.

Artist’s responsibility

It is the artist personally who is the recipient of the project funding and who is responsible for reporting the project funding as taxable income either from employment or from a business activity.

If the artistic activity is conducted as a sole trader, and the project funding has been awarded for something that is part of the business activity, the entire amount received becomes income from the business activity.

For artists without a company, one solution might be to transfer the project grant to a legal entity, such as a theatre association or other cultural organisation involved in implementing the project. However, as an artist, you are still responsible for the project on behalf of the Swedish Arts Grants Committee.

Project fundings that extend beyond a year-end

If all or part of the project funding will be used in a tax year later than the year in which it was paid, the artist must, for accounting principles, wait to recognise the project funding as income until the year or years in which it is used. In that case, it must be recognised at the same rate as it is used, i.e. when the expenses are incurred. This also applies for tax purposes. A project funding received that is used in a different year than in which it was paid out is known as deferred income.

Read more about project fundings from the Swedish Arts Grants Committee in the handbook Grants and project funding for Professional Artists in relation to tax and social security schemes. Click the link in the grey box to download.

Also applies to Kulturbryggan’s programme

Whatever applies to project fundings from the Swedish Arts Grants Committee also applies to those with companies who have been awarded a project funding within one of Kulturbryggan´s programmes.

Swedish Tax Agency provides legal guidance

The Swedish Tax Agency’s (Skatteverket) website contains more information about grants and project funding as relates to the Swedish Arts Grants Committee’s various grants.