Incomes Register for associations

How is a prize won by a domestic animal reported to the Incomes Register, as an animal has no personal identity code?

A prize won by an animal is income that belongs to the animal's owner. The competition organiser reports the data to the Incomes Register using the identifying information of the animal's owner.

An animal has more than one owner. How is a competition prize reported to the Incomes Register?

The competition prize is primarily distributed according to ownership. For each owner, the amount of taxable income corresponding to their share of ownership is reported to the Incomes Register. If the owners distribute the prize between themselves in a different manner – for example, so that a prize from a specific competition belongs to just one of the owners – the prize is reported to the Incomes Register according to the agreement.

We won a bag of dog food worth about EUR 60 in a dog show. I did not accept the prize, because the food is unsuitable for my dog. Do I still have to report the income to the Incomes Register?

No. You do not need to report a competition prize to the Incomes Register if you did not accept the prize for some reason. In such a case, the prize did not become taxable income for you. If you had accepted the prize, reporting it to the Incomes Register would have been the responsibility of the organiser of the dog show.

My animal won prizes with significant monetary value in a competition organised by an association. How do I report the data to the Incomes Register?

The association that organised the competition is obligated to report any taxable prizes it gives out to the Incomes Register. You do not need to report the data to the Incomes Register yourself.

We are organising a competition jointly with several clubs. Who is obligated to report the taxable competition prizes to the Incomes Register?

If there are several associations jointly organising a competition, the organisers can agree between themselves on who will report the data.

An association gives monetary prizes in chess competitions. It was previously instructed that prizes be reported using the income type 316 (Other taxable income deemed earned income). However, I read somewhere that these prizes should be reported using the income type 336 (Non-wage compensation for work), with 'athelete' reported as additional information. Which one is correct?

Competition prizes from other events than sports competitions are reported using the income type 316 (Other taxable income deemed earned income). Athlete's fees (money, goods or gift cards) are reported using the income type 336 (Non-wage compensation for work), with 'Athlete' entered as additional information, if the athlete is not employed by the payer. If the athlete is employed by the payer, monetary prizes are reported using the income type 216 (Other compensation), and prize goods and gift cards are reported using the income type 317 (Other fringe benefit). In your case, you can use the latter reporting method, depending on whether the prize winner is employed by the association or not.

A sports club or an association gives prizes in a competition. How is reporting different for prize goods and monetary prizes? What information on the contestant is needed for the report and how will this affect the winner of the prize?

Competition prizes won from other events than sports competitions are reported to the Incomes Register with the income type 316 (Other taxable income deemed earned income). Both prize goods and monetary prizes are reported to the Incomes Register. Taxable competition prizes awarded as goods are valued at their fair value, or the value that could be received for the goods if they were sold immediately.

Competition prizes are reported if they have monetary value. Only symbolic items with an insignificant trade value can be left unreported. Trophies and comparable normal prize items that mostly have a sentimental value are not considered taxable income and are not reported to the Incomes Register. With regard to the taxable competition prizes reported to the Incomes Register, the organiser of the competition gives the prize to the winner. Therefore, prizes given in competitions between friends need not be reported to the Incomes Register.

Basic details on the winner (e.g. customer identifier) are needed for reporting. If the income earner has a Finnish personal identity code, no address information, for example, is needed.

Athlete's prizes (money, goods or gift cards) are reported using the income type 336 (Non-wage compensation for work), with 'Athlete' entered as additional information, if the athlete is not employed by the payer. If the athlete is employed by the payer, monetary prizes are reported using the income type 216 (Other compensation), and prize goods and gift cards are reported using the income type 317 (Other fringe benefit).

Should a non-profit association report to the Incomes Register the kilometre allowances it has paid?

Yes. The data is reported using the income type 357 (Kilometre allowance paid by non-profit organisation).

Should a non-profit association report to the Incomes Register the daily allowances it has paid?

Yes. The data is reported using the income type 358 (Daily allowance paid by non-profit organisation).

Does a non-profit organisation need to report gifts for an employee's special day to the Incomes Register?

Gifts for an employee's special day are not reported to the Incomes Register if they fulfil the criteria for being tax-exempt. It is common in the voluntary activities of non-profit organisations to remember volunteers for the work they perform for the organisation for no compensation. If the value of the gifts given as tokens of remembrance or appreciation is minor, they are tax-exempt for their recipients. A situation in which the gift has been agreed to act as compensation for performing work is an exception.

If a gift does not fulfil the criteria for being tax-exempt, it must be reported to the Incomes Register. If, for example, a gift voucher has been given as a gift for an employee's special day, it is reported using the income type 310 (Monetary gift for employees). If a gift voucher has been given as compensation for work, it is reported using the income type 317 (Other fringe benefit). Monetary remunerations are reported using the income type 216 (Other compensation). 

Read more in the Tax Administration Guidelines Questions concerning prepayment in the case of volunteer activities of non-profit and public organisations (in Finnish).

Should the prizes in a competition organised by an association be reported to the Incomes Register?

Competition prizes are reported to the Incomes Register only when they are taxable income and the prize received has monetary value.

Objects that have no actual exchange value need not be reported to the Incomes Register. Such objects include trophies, medals, and pennants, bags of sweets and packets of coffee, or small material prizes, like baseball caps, which are given out for advertising purposes.

How is remuneration paid by a non-profit association (e.g. a sports club) to another similar association, for example in the context of a sports competition, reported to the Incomes Register? That is, one association organises a competition and the other association (club) wins and is given a prize.

If the winner of a prize in a sports competition is an association and the prize is related to a non-profit association's non-profit activities and not to business activities, it is considered tax-exempt income from a personal source of income. Because the payer cannot know which of the two is in question, it must withhold taxes if the recipient is not registered in the prepayment register. If the association is not registered in the prepayment register, information concerning the prize paid to the association must be reported to the Incomes Register as non-wage compensation for work using the income type 336 (Non-wage compensation for work).

If an association pays kilometre allowances and non-wage compensation for work, must the association submit an employer's separate report? The association is not registered in the Employer Register.

In addition to an earnings payment report, the association must submit an employer's separate report if the association pays tax-exempt reimbursements of expenses. It does not matter whether the association is registered in the Employer Register or not.

Because no health insurance contribution is paid from tax-exempt reimbursements of expenses, the amount of health insurance contribution is reported in the separate report as EUR 0. For more information, see the instructions Reporting data to the Incomes Register: employer’s separate report.