Finland Allowances

Finland Allowances

Below is the summary of mandatory allowances in Finland:

Mobile Allowance

  • When an employer provides an employee with a telephone subscription and pays the subscription bills, this generates taxable income for the employee of €20 (2025) per month. If the subscription is used solely for work purposes, this is not considered a telephone benefit for the employee.

Internet Allowance

  • An internet connection provided by an employer to an employee is a tax-free benefit, but if the employer pays for an internet connection purchased by the employee themselves, it is a taxable benefit. It should also be noted that nowadays, internet connections often come with an entertainment package, which is not tax-free.

Car Allowance

  • A car benefit can be a free car benefit or a car usage benefit. A free car benefit is when the employer pays all the costs associated with the car. A car usage benefit is when the employee pays at least the fuel costs for the car.
  • The monthly value of the car benefit consists of two parts: the base value (percentage of the car's purchase price) and operating costs (monthly or kilometer-based euro amount). The base value corresponds mainly to the capital costs of the car. The base value includes depreciation, interest, insurance premiums, and vehicle tax. Operating costs, on the other hand, include tire, repair, and maintenance costs, as well as fuel costs for free car benefits.
  • The base value is lower for older cars than for new ones. On the other hand, operating costs are higher for older cars. This is due, for example, to the expiry of the warranty period and increased repair costs

Commuter Allowance

  • Tax-free benefits cannot be paid to employees for commuting to work. However, tax-free travel expenses can be paid if the journey is made to a secondary place of work.
  • However, the employer may offer the employee a tax-free public transport ticket. An employment travel ticket refers to a personal public transport ticket provided by an employer to an employee, which is intended solely for travel between home and work. According to the law, a personal public transport ticket worth up to €3,400 given by an employer to an employee for travel between home and work is tax-free income. However, the maximum tax-free amount for the employment travel ticket and bicycle benefit is EUR 3,400 per year.

Meal Allowance

  • Employers can arrange meal benefits in a number of different ways. The method used to arrange the benefit affects the basis for calculating the value of the benefit, which is specified in the decision on credit benefits. Employers can arrange meal benefits as follows:
    1. workplace or contract meals

or

    1. targeted payment instruments
  • The value of the meal benefit is €8.60 per meal if the direct costs incurred by the employer in providing the benefit and the VAT on these costs are at least €8.60 and no more than €13.70. If this amount is less than €8.60 or more than €13.70, the value of the benefit is considered to be the amount of the direct costs and the value added tax on these costs.

Tax-exempt allowances for travel expenses

  • Kilometer allowance €0.59 per kilometer
  • Per diems
    • More than 6 hours (partial amount) €24.00
    • More than 10 hours (full amount) €53.00
  • Per diems abroad are based on the traveled country
  • Meal money and accommodation allowances may also be tax-exempt.

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