Tax-exempt allowances in 2015 for business travel

Date of issue
12/8/2014
Record no.
A202/200/2014
Validity
In force until further notice

Decision of the Tax Administration on tax-exempt allowances for travel expenses in 2015

— English translation —

Under § 73 and § 75.2 of Income Tax Act (TVL) 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 2015 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 § 72a, Income Tax Act (TVL)
  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:

Vehicle (means of transport) Maximum allowance amounts per Km
Passenger car 44 cents, raised by:
  • 7 cents for towing a trailer.
  • 11 cents, if performance of the duties-at-hand requires towing a caravan attached to the car.
  • 21 cents, if performance of duties requires towing a mobile canteen or other comparable heavy load attached to the car.
  • 3 cents for transporting machinery or other items in the car; weighing over 80 kilograms, or of large size.
  • 3 cents, if performance of duties requires the employee to transport a dog in the car
  • 9 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 78 cents
Motorboat, more than 50 hp 114 cents
Snowmobile 106 cents
All-terrain quadbike 100 cents
Motorcycle 33 cents
Moped 17 cents
Other means of transport 10 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 3 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 the fuel he is entitled to a kilometer allowance of no more than 12 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:

Duration of trip Maximum per diem
More than 6 hours (partial amount) €18.00
More than 10 hours (full amount) €40.00
and, if travel time exceeds the last full day of travel:  
- by at least 2 hours €18.00
- by more than 6 hours €40.00

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:

Country or region

Maximun per diem €

Afghanistan

56.00

Albania

52.00

Algeria

68.00

Andorra

58.00

Angola

97.00

Antiqua and Barbuda

74.00

Argentina

42.00

Armenia

51.00

Aruba

48.00

Australia

65.00

Austria

62.00

Azerbaidzhan

69.00

Azores

59.00

Bahamas

70.00

Bahrain

68.00

Bangladesh

51.00

Barbados

60.00

Belarus

53.00

Belgium

61.00

Belize

42.00

Benin

43.00

Bermuda

69.00

Bhutan

37.00

Bolivia

35.00

Bosnia and Hercegovina

50.00

Botswana

40.00

Brazil

65.00

Brunei

40.00

Bulgaria

51.00

Burkina Faso

38.00

Burundi

40.00

Cambodia

50.00

Cameroon

48.00

Canada

67.00

Canary Islands

60.00

Cape Verde

42.00

Central African Republic

48.00

Chad

53.00

Chile

51.00

China

66.00

-Hong Kong

68.00

-Macao

64.00

Colombia

58.00

Comoros

44.00

Congo (Congo-Brazzaville)

50.00

Congo, Democratic Republic of
(Congo-Kinshasa)

67.00

Cook Islands

65.00

Costa Rica

50.00

Côte d’Ivoire, Ivory Coast

71.00

Croatia

60.00

Cuba

51.00

Curaçao

44.00

Cyprus

61.00

Czech Republic

54.00

Denmark

68.00

Djibouti

59.00

Dominica

50.00

Dominican Republic

54.00

East Timor

45.00

Ecuador

52.00

Egypt

55.00

El Salvador

47.00

Eritrea

43.00

Estonia

51.00

Ethiopia

42.00

Faroe Islands

53.00

Fiji

44.00

France

66.00

Gabon

74.00

Gambia

34.00

Georgia

50.00

Germany

61.00

Ghana

38.00

Greece

60.00

Greenland

53.00

Grenada

59.00

Guadeloupe

50.00

Guatemala

50.00

Guinea

55.00

Guinea-Bissau

35.00

Guyana

38.00

Haiti

51.00

Honduras

43.00

Hungary

54.00

Iceland

67.00

India

46.00

Indonesia

44.00

Iran

43.00

Iraq

62.00

Ireland

66.00

Israel

72.00

Italy

64.00

Ivory Coast, Côte d’Ivoire

71.00

Jamaica

51.00

Japan

71.00

Jordania

73.00

Kazakhstan

62.00

Kenya

57.00

Korea, Democratic People's
Republic (North Korea)

66.00

Korea,
Republic of (South Korea)

79.00

Kosovo

45.00

Kuwait

66.00

Kyrgystan

46.00

Laos

45.00

Latvia

50.00

Lebanon

67.00

Lesotho

35.00

Liberia

49.00

Libya

58.00

Liechtenstein

69.00

Lithuania

50.00

Luxembourg

64.00

Macedonia

51.00

Madagascar

36.00

Madeira

58.00

Malawi

50.00

Malaysia

55.00

Maldives

55.00

Mali

41.00

Malta

62.00

Marshall Islands

54.00

Martinique

52.00

Mauritania

52.00

Mauritius

51.00

Mexico

59.00

Micronesia

49.00

Moldova

45.00

Monaco

67.00

Mongolia

46.00

Montenegro

52.00

Morocco

61.00

Mozambique

50.00

Myanmar (formerly Burma)

54.00

Namibia

37.00

Nepal

39.00

Netherlands

65.00

New Zealand

63.00

Nicaragua

42.00

Niger

44.00

Nigeria

77.00

Norway

68.00

Oman

63.00

Pakistan

37.00

Palau

59.00

Palestinian territory

62.00

Panama

52.00

Papua New Guinea

60.00

Paraguay

35.00

Peru

56.00

Philippines

54.00

Poland

56.00

Portugal

60.00

Puerto Rico

51.00

Qatar

68.00

Romania

55.00

Russian Federation

53.00

-Moscow

66.00

-St. Petersburg

61.00

Rwanda

39.00

Saint Kitts and Nevis

60.00

Saint Lucia

74.00

Saint Vincent and the Grenadines

70.00

Samoa

49.00

San Marino

56.00

Sao Tome and Principe

57.00

Saudi Arabia

66.00

Senegal

48.00

Serbia

55.00

Seychelles

68.00

Sierra Leone

51.00

Singapore

67.00

Slovakia

57.00

Slovenia

57.00

Solomon Islands

50.00

Somalia

50.00

South Africa

48.00

South Sudan

54.00

Spain

62.00

Sri Lanka

45.00

Sudan

60.00

Suriname

47.00

Swaziland

37.00

Sweden

64.00

Switzerland

74.00

Syria

60.00

Tadzhikistan

51.00

Taiwan

58.00

Tanzania

45.00

Thailand

56.00

Togo

48.00

Tonga

44.00

Trinidad and Tobago

70.00

Tunisia

56.00

Turkey

58.00

-Istanbul

60.00

Turkmenistan

60.00

Uganda

38.00

Ukraine

53.00

United Arab Emirates

68.00

United Kingdom

69.00

-London and Edinburgh

73.00

United States

65.00

-New York, Los Angeles, Washington

71.00

Uruguay

50.00

Uzbekistan

52.00

Vanuatu

55.00

Venezuela

68.00

Viet Nam

53.00

Virgin Islands (USA)

43.00

Yemen

62.00

Zimbabwe

45.00

Zambia

55.00

Any other country, not specified above

44.00

 

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 €10.00.

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 €20.00.

§ 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 €12.00.

§ 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, 2015 and is applicable to business travel or part thereof taking place in 2015.

Further explanation of the list of foreign territories where per diem allowances are paid