Scam messages have been sent out in the Tax Administration’s name. Read more about scams.

What is compensation of use?

Compensation of use refers to compensation paid for the use, the right of use, or the sale of the right of use of a copyright or industrial property right.

Copyright may be associated with

  • a literary work
  • a work of art
  • a photograph.

Industrial rights include

  • patents
  • design rights
  • trademarks

Compensation for use can be taxable earned income or taxable capital income. If a copyright has been transferred as an inheritance or through a will, or if it has been bought, compensation received for its use is taxable capital income. Otherwise the compensation for use is taxable earned income, and the payer must follow the same employer’s obligations as in the case of trade income. See what obligations you have when you pay compensation for use.

Page last updated 11/25/2019