As of January 1, 2025, the Finnish Tax Administration has introduced a set of clear rules regarding tax-exempt travel allowances for business trips. This decision outlines how employees can be reimbursed for travel-related expenses—like transport, meals, and accommodation—while on work assignments. For business travelers, this means tax-free reimbursements that help ease the burden of travel costs. But how do these rules apply, and what should you know if you’re heading on a work trip? Let’s break it down.
1. What Counts as a Business Trip?
The first thing to know is what qualifies as a business trip. According to the new tax guidelines, a business trip is defined as any short-term travel where the employee performs work away from their regular workplace. This could include travel within Finland or internationally.
However, commuting from home to your regular workplace doesn’t count as a business trip. So, if you’re traveling just between your home and the office or a place where you normally work, these expenses aren’t eligible for reimbursement under the travel allowance rules. But, if you’re traveling to a temporary workplace—say, a client site or a project location away from your usual office—you’re in the clear to claim allowances.
2. What Types of Expenses Are Covered?
The allowances cover various types of expenses incurred during business travel. These include:
- Travel Expenses: This includes the cost of travel tickets for flights, trains, or buses. If you’re driving your own vehicle, you can claim a reimbursement based on mileage rates.
- Per Diem (Daily Allowance): A per diem is provided to cover meal and living expenses while on business trips. The amount varies depending on the duration of the trip and the destination. For example, trips longer than six hours qualify for a partial allowance, while trips exceeding 10 hours are eligible for a full allowance.
- Accommodation: If your business trip requires an overnight stay, accommodation expenses are reimbursed based on the receipt or proof from your hotel or accommodation provider.
3. Per Diem Allowance: How Does it Work?
The per diem allowance is designed to cover meal and living costs while traveling. The amount varies by the duration of the trip:
- More than 6 hours: €24 per day
- More than 10 hours: €53 per day
For travel abroad, the per diem is based on the country or region you’re visiting. For example, in countries like the United States or the United Kingdom, the per diem can be as high as €88-€95. However, if meals are provided by the employer or included in your travel ticket, the per diem is halved.
This system ensures that employees receive fair compensation for increased costs while traveling, without needing to submit detailed receipts for each meal or incidental expense.
4. Mileage Reimbursement: What’s the Rate?
If you’re using your own vehicle for work-related travel, you can claim mileage reimbursements. For 2025, the Finnish Tax Administration has set the following rates:
- Passenger car: 59 cents per kilometer
- Motorbike: 45 cents per kilometer
- Snowmobile: 142 cents per kilometer
- All-terrain quadbike: 134 cents per kilometer
Additional allowances are provided for specific conditions, such as towing trailers or transporting heavy loads, which increase the reimbursement rate.
5. Special Considerations for International Travel
For those traveling abroad on business, the per diem allowances are adjusted according to the country or region you’re visiting. Some countries, like Switzerland or the United States, offer a higher per diem (up to €95), while others, like Pakistan or Paraguay, have lower rates (around €33 to €34).
The key is that if your business trip exceeds 10 hours, you’re entitled to a per diem that reflects the local cost of living in your destination. This system ensures that regardless of where you travel, you’ll receive fair reimbursement for your extra expenses.
6. Meal Money: When Can You Claim It?
Meal money is another important allowance for business travelers, but it’s only available if a per diem is not paid. If you’re unable to have meals at your normal eating place during your business trip, you can claim meal money. The maximum amount is €13.25 per meal, and if you need to buy two meals away from your usual eating place, you can claim up to €26.50.
7. Night Travel and Accommodation Allowances
If your business trip includes travel between 9 PM and 7 AM, you may be entitled to a night travel allowance of €16. Additionally, when staying overnight, accommodation allowances are provided based on the actual cost of the accommodation, as long as you submit a receipt or other reliable proof of the expense.
8. Seafarers and Special Cases
The new travel allowance provisions also extend to seafarers, meaning they are entitled to the same allowances for business-related travel as land-based workers. Furthermore, employees working under exceptional circumstances—like those traveling at their employer’s request to a distant location—may be eligible for adjusted rates and allowances.
9. How Do These Changes Affect You?
For employees and employers alike, the 2025 travel allowance updates provide clarity and transparency. Employees can expect reasonable reimbursements for their work-related travel expenses, reducing out-of-pocket costs and ensuring compliance with tax rules. Employers, on the other hand, can rest assured they’re following up-to-date guidance on travel expenses and allowances.
Key Takeaways
- Business Travel: Travel to a temporary work location is eligible for allowances, but regular commuting isn’t.
- Per Diem: A daily allowance covers meals and living expenses, with different amounts for domestic and international travel.
- Mileage: Personal vehicle use for business is reimbursed at specified rates per kilometer.
- Meal Money: Only available when no per diem is provided.
- Accommodation and Night Travel: Reimbursed based on receipts, with additional allowances for night travel.
With these rules in place, employees traveling for work in 2025 can confidently navigate their expenses, knowing what’s eligible for reimbursement. For global businesses with employees in Finland or working with Finnish regulations, staying informed on these changes ensures smooth financial planning for work-related travel.
Always remember it’s essential to keep records of your travel expenses and follow the guidelines set by the tax authorities to ensure that you get the full benefit of these tax-exempt allowances.
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