Submitting reports to the Incomes Register on workers’ fringe benefits

Fringe benefits, often called perks, are noncash compensation that the employer can give to the workers. For tax purposes, fringe benefits are treated the same way as the worker’s wages, i.e. subject to income tax.  You the employer must withhold tax and social insurance contributions on the benefits’ values.

You must submit reports to the Incomes Register to indicate the values – the reportable value is typically the tax value of the fringe benefit concerned. The Tax Administration’s official decision on current tax values determines them for every calendar year.  If the fringe benefit you are giving is different from the fringe benefits listed in the official decision, you must apply that benefit’s fair market value in your reporting to the Incomes Register. “Fair market value” refers to the actual expenses the employer has had to pay in order to arrange the fringe benefit for the worker. For more information and further instructions, see the official decision.

We describe the most typical benefits below, also providing instructions for reporting. However, for further instructions to be followed in more special circumstances, see Reporting data to the Incomes Register: fringe benefits and reimbursement of expenses. For deadlines for reporting, see 1.5.

Read more about the Incomes Register’s income types: Wage income types

General instructions for reporting

Complete the earnings payment report and the 300 series types of income. If you also pay wages in cash during the reporting period when you make the fringe benefits available to workers, you can either indicate a sum total (100 series) or provide an itemisation (200 series) of the cash pay. If you collect an amount of money from the workers in order to reimburse you for the expenses relating to the benefits you give, fill in the 400 series types of income. Please note that the 400 series contains income type codes that are intended for reporting the employer-collected reimbursement for some of the typical fringe benefits. As a result, if you collect money for those benefits, you cannot use 407 Reimbursement collected for other fringe benefits.

You can combine the amount you withhold on the benefits with all the other taxes withheld, and then enter the sum under the 402 Withholding tax income type.

Reporting the amounts collected from workers

If your worker reimburses you for the fringe benefit, you must report the amount collected to the Incomes Register. Specific codes are intended for reimbursements related to company cars, commuter tickets and bicycles. However, the 407 Reimbursement collected for other fringe benefits code of income type is for all other benefits you may provide. In other words, the 400 series income type codes are:

  • 401 Compensation collected for car benefit
  • 407 Reimbursement collected for other fringe benefits
  • 415 Reimbursement for employer-subsidised commuter ticket
  • 420 Reimbursement collected for bicycle benefit

The benefits must be included in earnings payment reports even if your worker had paid you reimbursement equal to or exceeding the tax value, with no remaining amount to be added to the worker’s sum of wages.

Specific codes for types of income are required for: company cars, employer-subsidised commuter tickets, employer-provided bicycles and for the benefit in the form of lower interest on housing loans

Enter the following fringe benefits invariably as:

  • 304 Car benefit
  • 341 Employer-subsidised commuter ticket, tax-exempt share
  • 342 Employer-subsidised commuter ticket, taxable share
  • 363 Tax-exempt share of bicycle benefit
  • 364 Bicycle benefit, taxable share
  • 302 Interest benefit for a housing loan

You are not allowed to enter data as a combined total amount for any of the above, i.e. do not use 317 Other fringe benefit.

Company car

This benefit arises when the worker or his or her family member is granted the right of private use of the employer's motor vehicle. Enter the data under income type 304 Car benefit. Fill in the following:

  • the type of the benefit: either “limited car benefit” or “full car benefit”
  • the vehicle’s age group: A, B, C, or U.

If the vehicle’s expenses are based on a driver’s logbook instead of a fixed monthly value, enter the ‘Odometer reading’. Enter the private-use kilometres driven. According to the Tax Administration’s official decision, you can indicate the number of kilometres by every pay period or, alternatively, on the last report for the year at the latest. If you do not receive information on the private-use kilometres until after the month when the benefit was available to the worker, you must make corrections to the submitted reports as necessary.

You must also indicate the vehicle’s emissions value if the tax value of the company car is reduced by virtue of it being a zero-emissions vehicle or a low emission vehicle. The value can be reduced if CO2 emissions are 0 to 100 g/km. Reports to be submitted in 2022 to 2025 the Incomes Register must contain the vehicles’ emissions ratings.

If you collect an amount of money from your worker for the company car, indicate the amount under 401 Compensation collected for car benefit. Do not subtract this amount from the tax value that you indicate under 304 Car benefit. If you collect an amount higher than the current tax value, the maximum amount to indicate under 401 is still the tax value. This means that you cannot submit a report to the Incomes Register where the company-car’s reimbursement would exceed its tax value.

Employer-provided commuter tickets

This fringe benefit arises when the employer gives workers personal tickets for mass transit for commuting between the worker’s home and place of work. To enter the tax-exempt part, use 341 Employer-subsidised commuter ticket, tax-exempt share and correspondingly, use 342 Employer-subsidised commuter ticket, taxable share for entering the amount deemed as wages and thus subject to tax. Employers must include this fringe benefit in the earnings payment report although no taxable benefit value were to emerge.

Under the tax rules, the employer-subsidised commuter ticket is tax-exempt up to €3,400. If the worker has both the tickets and a bicycle as a fringe benefit, their combined tax-exempt parts can maximally reach €3,400 per calendar year.

If you collect reimbursement, indicate it under 415 Reimbursement for employer-subsidised commuter ticket. Enter the entire amount you collect, even if it is higher than the part deemed as wages and thus subject to tax. You must subtract the amount you collect from the amount deemed as wages and subject to tax. If there is no amount deemed as wages to subtract it from, you must subtract it from the tax-exempt part. The 342 and 341 codes for type of income are for the remaining difference i.e. for the remaining tax values of the benefits.

For more information, see guidelines and examples in Reporting data to the Incomes Register: fringe benefits and reimbursements of expenses under 1.1.2 Employer-subsidised commuter tickets.

Employer-provided bicycle

This benefit arises when the worker is granted the right of private use of the employer's bicycle. To enter the tax-exempt part, use 363 Bicycle, tax-exempt share and correspondingly, use 364 Bicycle, taxable share for the amount deemed as wages and thus subject to tax. Employers must include this fringe benefit in the earnings payment report although no taxable benefit value were to emerge.

Under the tax rules, the fringe benefit in the form of a bicycle is tax-exempt up to €1,200. If the worker has both the bicycle and commuter tickets as his or her fringe benefit, their combined tax-exempt parts can maximally reach €3,400 per calendar year. This means that you must subtract the bicycle’s tax-exempt part from the commuter tickets’ maximum tax-exempt amount.

If you collect reimbursement, indicate it under 420 Reimbursement collected for bicycle benefit. Enter the entire amount you collect, even if it is higher than the part deemed as wages and thus subject to tax. You must subtract the amount you collect from the amount deemed as wages and subject to tax. If there is no amount deemed as wages to subtract it from, you must subtract it from the tax-exempt part. The 364 and 363 codes for type of income are for the remaining difference i.e. for the remaining tax values of the benefits.

If you give your worker this fringe benefit and simultaneously reduce his or her wage amount paid in cash, see guidelines and examples in Reporting data to the Incomes Register: fringe benefits and reimbursements of expenses under 1.1.3 Bicycle benefit.

Interest benefit for a housing loan

This fringe benefit arises when the employer collects annual interest on a housing loan below the reference interest rate commonly used in the market. “Reference rate” means the Euribor rate for 1, 3, 6 or 12 months, or another reference rate that banks generally apply in their lending business, such as the bank’s prime rate. For tax purposes, reduced interest costs for the worker make up a fringe benefit, accounted for in the same way as payments of wages are.

Indicate the amount of the benefit under Interest benefit for a housing loan (302)

Enter data as a combined total amount or as broken down to specific types of income: accommodation, telephone, and meals as fringe benefits

You can combine the tax values of the following benefits and indicate the total under 317 Other fringe benefit or alternatively use the following codes for income types:

  • 301 Accommodation benefit
  • 330 Telephone benefit
  • 334 Meal benefit

If you opt for the 317 Other fringe benefit, you must also fill in the Type of benefit as appropriate.

Correspondingly, if you opt for breaking down the above 3 benefits to specific income type codes, do not repeat your data entry under 317 Other fringe benefit.

Accommodation

This benefit arises when the worker can live in a house/apartment that the employer owns or has otherwise arranged for. The worker’s right to live there can be based on the employment contract’s nature, or it can be agreed as being part of the worker’s pay.

Indicate the fringe benefit’s tax value under 301 Accommodation benefit or under 317 Other fringe benefit. If you opt for the 317 Other fringe benefit income type, you must also fill in the Type of benefit — Accommodation benefit. If you, the employer collect reimbursement from the worker, indicate it under 407 Reimbursement for other fringe benefits.

Employer-provided telephone

This benefit arises when the employer pays the costs of the telephone subscription it provides, also paying for the worker’s private use outside working hours.

Indicate the fringe benefit’s tax value under 330 Telephone benefit or under 317 Other fringe benefit. If you opt for the 317 Other fringe benefit income type, you must also fill in the Type of benefit — Telephone benefit. If you collect reimbursement, indicate it under 407 Reimbursement for other fringe benefits.

Meals

This benefit arises when the employer has made arrangements for the workers to eat meals at a price below market prices or completely free of charge. The benefit may take the form of a lunch coupon, plastic card, a mobile app – or an employer-provided lunchroom. Regardless of the practical arrangements that you have chosen, your monthly earnings payment reports to the Incomes Register must indicate the tax values of the meals.

Use either the 334 Meal benefit or the 317 Other fringe benefit codes for income types. If you opt for the 317 income type, you must also fill in the Type of benefit — Meal benefit.

Your workers pay a reimbursement equal to the meals’ tax value

If you collect reimbursement for the meals and the amount equals tax value, you must invariably use 334 Meal benefit and tick Yes for Reimbursement for a meal benefit corresponds to taxable value.  In this case, do not give an amount in euros as the meal benefit’s tax value. In the same way, do not use the 317 Other fringe benefit code, and do not enter the amount your workers pay you under 407 Reimbursement collected for other fringe benefits.

Your workers pay a reimbursement but it is lower than the meals’ tax value

If it is your policy to collect reimbursement but the amount stays below tax value, first indicate the full tax values either under 334 Meal benefit or under 317 Other fringe benefit, then fill in Type of benefit — Meal benefit. For both of the above two variants, enter the amount your workers pay you under 407 Reimbursement collected for other fringe benefits. Enter the full tax value of the meals, and correspondingly, enter the worker-reimbursed amount as the amount collected. Although you receive reimbursement, which reduces the meal benefit’s tax value, you must still indicate the full tax values of the meals. In other words, do not subtract the collected amount from the tax value.

If the meals are treated as being a meal offered to an intern, or a meal involving “meal subsidy” payments, see guidelines and examples in Reporting data to the Incomes Register: fringe benefits and reimbursements of expenses under 1.2.3 Meal benefit.

Other fringe benefits

If you opt for not entering data separately for accommodation, telephones and meals, you can enter them under the 317 Other fringe benefit code as a combined total sum. In this case, you must inform the Incomes Register of what fringe benefits are included in the total.

Accordingly, include one or more than one of the following under the Type of benefit data element: accommodation, telephone, meal benefit, or other fringe benefit.

Select Other benefits if the fringe benefit falls under one of the following categories: employer-provided garage, motorcycle or boat; life and pension insurance premiums treated as pay, other insurance premiums paid by the employer and not collected from the worker, a benefit resulting from a non-personalised gift card, and fringe benefits received by a person working as a seafarer.

If you collect reimbursement, indicate it under 407 Reimbursement for other fringe benefits. Do not subtract the amount you collect from the fringe benefit’s tax value. Instead, indicate the full tax value. This means that the fringe benefit must be reported in full, even when the worker has paid a reimbursement equal to the tax value of the benefit, with no remaining amount subject to tax. Even if you had collected an amount that exceeds the tax value of the fringe benefit, the tax value is still the maximum reimbursement to enter in the earnings payment report.