This article outlines the rules for tax‑free business expense reimbursement in Finland, including mileage rates, travel rules, documentation requirements, per diem allowances, and taxability standards based on the Finnish Tax Administration's 2025 guidance.
1. Travel & Mileage (2025 Rates)
According to the Finnish Tax Administration (Verohallinto), the following rates apply:
Mileage – Private Vehicle (Tax‑Free Rates 2025)
€0.57 per km – personal car
€0.32 per km – motorcycle
€0.21 per km – bicycle or electric bicycle
Additional Allowances (Add‑Ons)
Employees may receive supplementary tax‑free allowances when applicable:
+ €0.04/km – towing a trailer
+ €0.07/km – transporting heavy items (≥ 80 kg)
+ €0.08/km – transporting additional passengers
+ €0.12/km – using a van or minibus
Any mileage paid above these official rates becomes taxable income.
Parking & Tolls
Must be submitted separately from mileage.
Receipts required for reimbursement.
2. Business Travel Requirements
Finland does not impose formal "caps," but tax‑free reimbursement is valid only when:
Travel is work‑related and outside the employee's normal workplace.
A travel diary or expense report is completed.
Evidence is provided:
Receipts (for actual expenses), or
Kilometre logs (for mileage claims).
Two‑Year Rule (Secondary Workplace)
If an employee travels repeatedly to the same location for more than 2 years, the destination may become a secondary workplace, and the travel reimbursements may become taxable.
3. Transportation Rules
All transportation modes are allowed if business‑justified:
Air travel – economy class unless otherwise contractually agreed
Train, bus, ferry, metro, tram – reimbursable with receipts
Taxi – allowed for:
Early/late travel
Limited public transport
Transporting heavy equipment
Business urgency
Receipt required (digital acceptable).
Rental cars – allowed with:
Business justification
Rental invoice
Fuel receipts
Digital receipts are fully accepted in Finland.
4. Invoicing & Documentation Requirements
A valid expense claim in Finland must include:
Supplier name
Date of purchase
Items/services purchased
Amount paid
VAT breakdown (if applicable)
Payment method
Business purpose
Travel report or kilometre log (for travel/mileage)
Adding the supplier's Business ID (Y‑tunnus) is recommended but not mandatory for tax‑free reimbursement.
Employer Entity for Invoices: Remote People Global Technology Finland Oy
Mileage
Requires km‑log, not receipts.
5. Tax‑Free Reimbursable Expenses (Examples)
When properly justified and documented, the following can generally be reimbursed tax‑free:
Air, train, bus, taxi, ferry transportation
Mileage according to official 2025 rates
Parking and tolls
Hotel/accommodation costs
Meals during business travel (per diems)
Work‑related equipment (if employer-owned)
Phone/internet used for work (business portion)
Safety equipment, protective clothing, or required tools
6. Per Diem Allowances (2025)
Per diems (daily allowances) are tax‑free when the employee meets the time/distance criteria and completes a travel report.
Domestic Per Diem – 2025
€51 per day – full daily allowance
€24 per day – partial daily allowance
Conditions:
Trip lasts > 6 hours → partial allowance
Trip lasts > 10 hours → full allowance
Travel is > 15 km from both the home and primary workplace
International Per Diems – 2025
Vary by country (e.g., Sweden ~€72/day, Germany ~€71/day, USA ~€88/day).
Full official list published annually by Verohallinto.
Tax-Free Only If:
Travel report completed
Distance and time thresholds met
Meal reductions applied when meals are provided (reduces per diem)
7. Entertainment, Gifts & Team Expenses
Business Entertainment
Tax‑free only when:
Directly linked to business/client work
Reasonable in cost
Supported by:
Client names
Business purpose
Receipt
Gifts
≤ €35 (excl. VAT) typically considered allowable business gifts
Higher amounts may become taxable benefits
Team Meals / Events
Allowed if work‑related
Purely social events without work relevance → taxable benefit
8. Wellness, Health & Personal Expenses
Generally taxable unless:
Required by law (e.g., mandatory safety or medical checks)
Employer-approved ergonomic/work equipment
Accident insurance mandated by regulations
Typically Taxable:
Gym memberships
Yoga or wellness classes
Massage
Swimming