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Tax-exempt allowances in 2024 for business travel

Date of issue
11/16/2023
Record no.
VH/6295/00.01.00/2023
Validity
1/1/2024 - Until further notice

Decision of the Tax Administration on tax-exempt allowances for travel expenses in 2024

— English translation —

Under § 73 and § 75.2 of Income Tax Act (tuloverolaki) of 30 Dec 1992 (1535/1992), including the amendments by Act no 504/2010 and by Act no 1246/2013, the Finnish Tax Administration has set out the following:

§ 1

The criteria for and amounts of allowances for travel expenses, to be considered exempt from tax in the 2024 taxation, shall be as prescribed in this decision below.

§ 2

Travel expenses are the costs arising from a taxpayer's business travel in the territory of Finland or other countries.

§ 3

Business trips mean any short-term trips by an employee in performing his duties to a place where he temporarily performs working tasks or conducts business, distinct from his regular place of work. If, because of the nature of his work, the employee has no regular place of work, any short trip by employee from home to a temporary place of employment is a business trip.

Furthermore, trips under the following circumstances are also regarded as business trips:

  1. Location of the workplace is elsewhere than inside the facilities or establishments that belong to the employer or to a closely related corporate entity within the employer’s sphere of interest;
  2. Work falls into the definition of temporary work under § 72 a, Income Tax Act (tuloverolaki);
  3. Location is at a distance exceeding 100 kilometres from the taxpayer’s home;
  4. Taxpayer has stayed overnight, due to the trip to the workplace, in temporary quarters, which are necessary because of the distant location of the workplace.

Nevertheless, travelling or commuting between home and regular place of work is not considered a 'business trip' or 'travelling in business'. This also concerns weekend travel or other similar travel between home and a temporary place of employment, during a longer work assignment spanning several work weeks.

If it is typical for the line of work that the location of employment changes frequently because of the short-term nature of work in the particular sector, daily travel from home to a temporary 2 location will only make the employee eligible to receive allowances for 'travel expenses proper' referred to in §7, §8 and §9 below, if the employee has no main or regular place of work. The employee shall, however, also be entitled to meal money (§14) if he has no opportunity to benefit from meal services arranged by his employer on the temporary location or in its immediate vicinity.

§ 4

Travel made otherwise than as referred to in section 3, paragraphs 1 and 2, by an employee to his secondary workplace, only makes the employee eligible to receive allowance for 'travel expenses proper' (see §7, §8 and §9), and to receive allowance for accommodation (see §16). Secondary workplace means such ordinary establishment of the employer, or another corporation within the same sphere of interests with the employer, which is situated in another area, or another state, than the employee’s primary, main or regular place of work.

Travelling to and from an employee’s separate accommodation and his secondary workplace does not entitle the employee to receive allowance for 'travel expenses proper' when the separate accommodation is necessary because of the location of the secondary workplace.

§ 5

The main or regular place of work is the employee’s permanent place of employment. If, owing to the itinerant nature of his work, the employee has no permanent place of employment, the main or regular place of work is considered the place where he receives his assignments and keeps the clothes, tools or materials that he uses in his work, or any other location with a similar function in respect of the performance of his duties.

§ 6

A day of travel means a period of no more than 24 hours beginning from the time that the employee sets out on a business trip from his workplace or home. A day of travel ends when the employee returns from a business trip to his workplace or home.

§ 7

Allowance for travel expenses proper to be paid for business travel means reimbursement for tickets for travel, seats or sleeping car berths and other comparable expenses directly related to travel.

Allowance for travel expenses proper also includes costs for the transport of tools and other such equipment that the employee must take with him.

§ 8

The maximum allowance for travel expenses, payable for the business travel of the employee using transport other than a motor vehicle owned or held by him is the amount spent on travel expenses proper, demonstrated with tickets provided by the transport company or other reliable proof.

§ 9

The maximum allowance for an employee’s business travel using a means of transport owned or held by him shall be:

Table of maximum allowance for an employee’s business travel
Vehicle (means of transport) Maximum allowance amounts per Km
Passenger car

57 cents, raised by:

  • 10 cents for towing a trailer.
  • 15 cents, if performance of the duties-at-hand requires towing a caravan attached to the car.
  • 29 cents, if performance of duties requires towing a mobile canteen or other comparable heavy load attached to the car.
  • 4 cents for transporting machinery or other items in the car; weighing over 80 kilograms, or of large size.
  • 4 cents, if performance of duties requires the employee to transport a dog in the car
  • 12 cents for actual kilometers driven on forest roads or road construction sites closed to other traffic if performance of duties so requires.
Motorboat, up to 50 hp 100 cents
Motorboat, more than 50 hp 145 cents
Snowmobile 138 cents
All-terrain quadbike 130 cents
Motorcycle 44 cents
Moped 23 cents
Other means of transport 14 cents.

If other persons, for whose transport the employer is responsible, travel in a vehicle owned or held by the employee, the maximum allowance referred to in paragraph 1 is raised by 4 cents per Km and passenger.

If an employee, enjoying the company car benefit known as the limited benefit (käyttöetu; förmån att använda bil), referred to in the official decision of the Tax Administration on benefits-in-kind, uses the company car for business travel and pays for the energy to run the vehicle, he is entitled to a kilometer allowance of no more than 13 cents per Km.

§ 10

Per diem, i.e. daily allowance means coverage for a reasonable increase in meal expenses and other living expenses incurred by the employee during business travel. Thus, per diem does not include allowance for travel expenses proper or accommodation expenses.

§ 11

Per diem is payable only for such a day when the temporary place of employment is located more than 15 Kms away from either the employee’s main or regular workplace or his home, depending on where the travel begins. Moreover, the temporary place of employment should be more than 5 Kms away both from the main or regular workplace and from home.

§ 12

Depending on the duration of a business trip, the maximum per diem amounts are the following

Table of maximum per diem amounts
Duration of trip Maximum per diem
More than 6 hours (partial amount) €24.00
More than 10 hours (full amount) €51.00
and, if travel time exceeds the last full day of travel:
- by at least 2 hours
€24.00

- by more than 6 hours

€51.00

For any day of travel, when the employee receives free meals, or meals included with the travel ticket, the maximum per diem is half the amount specified in paragraph 1. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.

§ 13

The maximum per diems payable for business travel outside Finland are as follows:

Table of maximum per diems payable for business travel outside Finland
Country or region Maximum per diem €
Afghanistan 59.00
Albania 81.00
Algeria 78.00
Andorra 63.00
Angola 71.00
Antiqua and Barbuda 94.00
Argentina 38.00
Armenia 61.00
Aruba 70.00
Australia 74.00
Austria 80.00
Azerbaidzhan 70.00
Azores 69.00
Bahamas 91.00
Bahrain 80.00
Bangladesh 57.00
Barbados 83.00
Belarus 63.00
Belgium 77.00
Belize 52.00
Benin 47.00
Bermuda 90.00
Bhutan 49.00
Bolivia 48.00
Bosnia and Hercegovina 54.00
Botswana 41.00
Brazil 80.00
Brunei 45.00
Bulgaria 64.00
Burkina Faso 40.00
Burundi 46.00
Cambodia 67.00
Cameroon 59.00
Canada 82.00
Canary Islands 71.00
Cape Verde 45.00
Central African Republic 101.00
Chad 47.00
Chile 56.00
China 74.00
- Hong Kong 86.00
Colombia 64.00
Comoros 42.00
Congo (Congo-Brazzaville) 64.00
Congo, Democratic Republic of
(Congo-Kinshasa)
51.00
Cook Islands 70.00
Costa Rica 65.00
Côte d’Ivoire, Ivory Coast 80.00
Croatia 69.00
Cuba 68.00
Curaçao 58.00
Cyprus 65.00
Czech Republic 89.00
Denmark 79.00
Djibouti 83.00
Dominica 61.00
Dominican Republic 53.00
East Timor 46.00
Ecuador 63.00
Egypt 66.00
El Salvador 60.00
Eritrea 95.00
Estonia 75.00
Eswatini 37.00
Ethiopia 49.00
Faroe Islands 61.00
Fiji 52.00
France 78.00
Gabon 92.00
Gambia 46.00
Georgia 49.00
Germany 76.00
Ghana 47.00
Greece 68.00
Greenland 63.00
Grenada 73.00
Guadeloupe 53.00
Guatemala 76.00
Guinea 83.00
Guinea-Bissau 41.00
Guyana 51.00
Haiti 62.00
Honduras 58.00
Hungary 69.00
Iceland 92.00
India 62.00
Indonesia 57.00
Iran 102.00
Iraq 70.00
Ireland 78.00
Israel 88.00
Italy 76.00
Ivory Coast, Côte d’Ivoire 80.00
Jamaica 62.00
Japan 66.00
Jordania 90.00
Kazakhstan 59.00
Kenya 70.00
Korea, Democratic People's
Republic (North Korea)
70.00
Korea,
Republic of (South Korea)
87.00
Kosovo 58.00
Kuwait 84.00
Kyrgystan 41.00
Laos 32.00
Latvia 73.00
Lebanon 102.00
Lesotho 34.00
Liberia 60.00
Libya 52.00
Liechtenstein 79.00
Lithuania 72.00
Luxembourg 77.00
Madagascar 45.00
Madeira 68.00
Malawi 77.00
Malaysia 50.00
Maldives 68.00
Mali 47.00
Malta 71.00
Marshall Islands 65.00
Martinique 55.00
Mauritania 52.00
Mauritius 53.00
Mexico 81.00
Micronesia 59.00
Moldova 73.00
Monaco 92.00
Mongolia 42.00
Montenegro 66.00
Morocco 71.00
Mozambique 53.00
Myanmar (formerly Burma) 58.00
Namibia 36.00
Nepal 51.00
Netherlands 83.00
New Zealand 74.00
Nicaragua 51.00
Niger 50.00
Nigeria 78.00
North Macedonia 64.00
Norway 70.00
Oman 74.00
Pakistan 29.00
Palau 99.00
Palestinian territory 76.00
Panama 61.00
Papua New Guinea 76.00
Paraguay 36.00
Peru 52.00
Philippines 69.00
Poland 72.00
Portugal 70.00
Puerto Rico 70.00
Qatar 78.00
Romania 68.00
Russian Federation 66.00
- Moscow 82.00
- St. Petersburg 76.00
Rwanda 37.00
Saint Kitts and Nevis 68.00
Saint Lucia 86.00
Saint Vincent and the Grenadines 85.00
Samoa 61.00
San Marino 59.00
Sao Tome and Principe 102.00
Saudi Arabia 80.00
Senegal 58.00
Serbia 75.00
Seychelles 87.00
Sierra Leone 47.00
Singapore 79.00
Slovakia 79.00
Slovenia 72.00
Solomon Islands 63.00
Somalia 86.00
South Africa 50.00
South Sudan 102.00
Spain 74.00
Sri Lanka 29.00
Sudan 83.00
Suriname 78.00
Sweden 64.00
Switzerland 93.00
Syria 91.00
Tadzhikistan 35.00
Taiwan 69.00
Tanzania 54.00
Thailand 63.00
Togo 58.00
Tonga 62.00
Trinidad and Tobago 83.00
Tunisia 61.00
Turkey 35.00
- Istanbul 37.00
Turkmenistan 92.00
Uganda 49.00
Ukraine 64.00
United Arab Emirates 73.00
United Kingdom 79.00
- London and Edinburgh 83.00
United States 89.00
- New York, Los Angeles, Washington 97.00
Uruguay 59.00
Uzbekistan 32.00
Vanuatu 70.00
Venezuela 102.00
Viet Nam 69.00
Virgin Islands (USA) 64.00
Yemen 102.00
Zimbabwe 102.00
Zambia 55.00
Any other country, not specified above 52.00

The per diem allowance concerns one day of travel i.e. 24 hours from the beginning of a business trip or 24 hours from the end of the preceding day of travel.

The maximum amount of per diem is defined on the basis of the country or region where the day of foreign travel ends. If the day of travel ends on a ship or airplane, the amount should be based on the country from where the ship or airplane last departed or, if leaving Finland, where it will first arrive.

Upon returning to Finland, the employee is entitled to half of the per diem for foreign travel paid for the last completed day of travel if the length of the business trip exceeds, by more than two hours, the last full day of travel that ended in foreign territory or in a ship or airplane departing from such territory.

If the length of a business trip exceeds, by more than ten hours, the last full day of travel, which ended in foreign territory or in a ship or airplane departing from such a territory, the employee is entitled to a per diem for foreign travel for the last full day of travel. The maximum amount payable for a day of travel or part thereof beginning after the employee returns to Finland must be determined as prescribed above in § 12.

For any business trip in foreign countries lasting a minimum of 10 hours, the employee is entitled to the confirmed amount for the relevant country. If the total duration of the trip is shorter than 10 hours the amount should be paid in accordance with the provisions and amounts applicable to domestic travel.

If the employee receives free meals or meals included in the price of a ticket or a hotel room the per diem must be reduced by 50 percent. For the purposes of calculation of per diems for foreign travel, two free meals constitute ‘free meals’.

If a business trip outside Finnish territory is made, the work being done under exceptional circumstances at the request of an employer located in Finland, and if the employee returns to Finnish territory for the night, and no per diem is being paid under § 12 above, the maximum allowance for business travel, by derogation from subparagraph 1 above is €18.00.

§ 14

Meal money can only be paid if no per diem is being paid, and the work assignment prevents the employee from having a meal at his normal eating-place during his meal break. The maximum amount is confirmed as €12.75.

If the employee has to have two meals at a place other than his normal eating-place during a business trip and no per diem is being paid the maximum meal money equals €25.50.

§ 15

The maximum allowance for accommodation payable over and above the per diem is the amount shown on a receipt or other reliable written proof provided by the accommodation establishment.

§ 16

The maximum allowance for accommodation payable, over and above the allowance for travel to the secondary workplace, is the amount shown on a receipt provided by the accommodation establishment, or a reasonable amount shown on other reliable written proof.

§ 17

An allowance for night travel is payable only if at least 4 hours (during a day of travel for which the employee is entitled to a per diem) are between the hours of 09:00 PM and 07:00 AM and if the employer does not arrange any free accommodation for the employee or pay him allowance for accommodation or for a sleeping car berth. The maximum allowance for night travel is €16.00.

§ 18

Seafarers: The foregoing provisions on allowances for travel expenses are applicable to the tax-exempt allowances under the law, payable to taxpayers earning seafarer’s income.

§ 19

This decision comes into force on January 1, 2024 and is applicable to business travel or part thereof taking place in 2024.

AttachmentFurther explanation of the list of foreign territories where per diem allowances are paid (pdf)

Page last updated 11/16/2023