Prepayment register and permission to use music

Belonging to the prepayment register affects the advance collection of taxes. A license for using music is required always when music is played publicly or recorded for public performance purposes. Read more below!

Permissions and notifications 3/3

  • What is the prepayment register?

    When the performer of the work has been entered in the prepayment register, the payor need not withhold tax from payment for labour or service, royalties or other nonwage compensation. However, if the pay is wages, the payor must always withhold tax on it even though the beneficiary is on the register.

    The prepayment register is maintained by the Finnish Tax Administration. The Finnish Tax Administration records, upon application, persons, companies and organisations that practice business activities, farming or other income-generating activities in the prepayment register.

    It is not required that the activities have begun before the entry into the register. It is enough that the activities will most likely be started. Activities that are clearly deemed as hobby activities do not fulfil the registration requirements.

    It is not mandatory to be registered in the prepayment register. The work performer may deem it appropriate that the client pays the withholding tax from the compensation received by the performer.

    Operators receiving copyright compensation or engaged only in trading activities can also register in the prepayment register.

    What is the purpose of the prepayment register? Belonging to the prepayment register affects the advance collection of taxes. The purpose of being on the prepayment register is to make it clear that the payor does not have to arrange for tax withholding; instead, the recipient, being prepayment-registered, will pay whatever advance payments are required.

    Source: vero.fi

  • A license for using music is required always when music is played publicly or recorded for public performance purposes. The license is granted, depending on the situation, byGT Music Licences Ltd (licenses for playing background music in a restaurant) or Teosto (if a live performance is needed).

    A license for using music can be bought on the website www.musiikkiluvat.fi

    For example, the fee for a restaurant with 50 seats that plays background music is a total of EUR 44.14/month (the example price does not include VAT).

    However, each restaurant is a unique entity, which means that the monthly prices are calculated on a case-by-case basis. You can find an easy-to-use calculator on the musiikkiluvat.fi website to help you estimate these costs.