Remote working and deductions

Working remotely may cause you expenses that are deductible in taxation. These include workspace costs, furniture expenses, and data connection fees.

If you receive wage income, you are automatically granted a €750 deduction for the production of income. If you have more expenses than this, you can report them as expenses for the production of income on your tax return.

If you work remotely for a part of the week, you can deduct commuting expenses for the days when you go to your workplace. The personal liability threshold for commuting expenses is €750. If your travel expenses are more than €750, report them on your tax return. 

Working remotely means an arrangement in which you and your employer have agreed that you will work at least some of the time remotely from your home or other workspace you have acquired.

If you work from home, you can either claim the standard workspace deduction or deduct the actual costs of your workspace, such as furniture expenses. This means that you cannot claim both deductions on your tax return.

Standard workspace deduction

You can claim the standard workspace deduction even if your employer also has a workspace or room for you to work in. The workspace deduction is determined by the number of days you work remotely. The standard deduction covers the rent for the workspace and the cost of its furniture, lighting, electricity, heating and cleaning.

Table of workspace deduction based on the number of remote work days
Number of days remote work days Workspace deduction in 2019 tax assessment
If you work from home more than 50% of the total number of work days €900
If you work from home no more than 50% of the total number of work days €450

Example 1: Olli works from home for more than half of his work days during the year. He is entitled to the standard workspace deduction and can deduct €900 as expenses for the production of income in his tax assessment. Because this amount exceeds the automatic deduction for the production of income (€750), €900 is deducted from Olli’s wage income.

Example 2: Anu works from home for less than half of her work days during the year. She is entitled to the standard workspace deduction and can deduct €450 as expenses for the production of income in her tax assessment. However, if Anu does not have any other expenses for the production of income, she does not need to claim the deduction, because €750 will be automatically deducted from her wage income as the deduction for the production of income.

Deduction based on actual expenses

If your work involves a substantial amount of work from home, you can choose to deduct the actual expenses related to your workspace instead of claiming the standard workspace deduction. If you deduct the actual expenses, you must be prepared to specify your claim and present receipts. For example, you can deduct the rent for the workspace and its lighting, heating and furniture expenses, such as the cost of your work table and chair.

  • If you purchase the furniture yourself and use it mainly for work, you can deduct the acquisition and repair costs as expenses for the production of income.
    • If the acquisition cost is no more than €1,000 / piece of furniture, you can claim the expenses in one go during the year of purchase.
    • If the acquisition cost is more than €1,000, deduct 25% of the cost every year as depreciation.

If your employer borrows or purchases furniture for you

  • If you borrow furniture from your employer, i.e. your employer still owns the furniture, you are not considered to have received a taxable benefit.
  • If your employer buys you furniture that you can then keep as your own, you are considered to have received an amount equal to the fair market value of the furniture as wages. Your employer reports this amount to the Incomes Register.

Work tools can include your computer, monitor and keyboard, for example.

If you purchase the tools yourself and use them mainly for work, you can deduct the acquisition and repair costs as expenses for the production of income.

  • If the acquisition cost is no more than €1,000 / tool, you can claim the expenses in one go during the year of purchase.
  • If the acquisition cost is more than €1,000, deduct 25% of the cost every year as depreciation.

If you borrow tools from your employer, i.e. your employer still owns them, you are not considered to have received a taxable benefit.

If your employer buys you work tools that you can then keep as your own, you are considered to have received an amount equal to their fair market value as wages. Your employer reports this amount to the Incomes Register.

Example 3: Minna works from home for less than half of her total work days. She is entitled to a workspace deduction of €450. She has also purchased a monitor and a keyboard for work purposes. They cost €200 in total. The employer has provided Minna with a laptop, mouse and headset. 

Minna’s expenses for the production of income consist of the acquisition cost of the monitor and the keyboard as well as her workspace deduction, which amount to €650 in total. Minna does not need to claim these expenses, because she will automatically receive the €750 deduction for the production of income.

You have acquired the data connection yourself

If you have acquired a data connection (e.g. broadband) yourself, you can deduct it as expenses for the production of income. The deductible amount is

50% of the data connection fees, if you use the connection partly for work

100% of the data connection fees, if you use the connection mainly for work.

If your employer reimburses you the costs of a data connection that you have acquired yourself, the reimbursement is taxable income regardless of whether the connection is in work use or private use. You can deduct the portion of the costs relating to work use on your tax return, if your total amount of expenses for the production of income is more than €750.

Your employer has acquired the data connection for you

If your employer provides you with a data connection for work purposes, you do not have to pay tax on it regardless of whether the connection is in work use or private use.

Days that you work remotely are regular domestic work days, which means that you can use any meal benefits offered by your employer, such as lunch vouchers or electronic payment methods, as normal.

When working remotely, you typically work from your home but your workplace is still at the employer’s facilities. You can deduct commuting expenses for the days when you go to your workplace. However, a monthly pass for public transportation may still be the cheapest option even if you work from home a part of the week.

If your commuting expenses go over the threshold of €750, deduct the expenses according to the cheapest method of transportation available.

Please note that if your employer reimburses your commuting expenses to you, these reimbursements are considered taxable wages.

Frequently asked questions

If your holiday home is further away from your workplace than your permanent home, you can deduct the expenses calculated according to the cheapest method of transportation between your permanent home and your workplace.

If your holiday home is closer to your workplace than your permanent home, you can deduct the expenses calculated according to the cheapest method of transportation between your holiday home and your workplace.

In other words, the deductible expenses for travel between your holiday home and workplace can never be greater than the commuting expenses between your permanent home and workplace.

Your family situation affects what kind of travel expenses you can deduct.

In tax assessment, you are treated as having a family if

  • you are married or in a registered partnership
  • you live together with a partner with whom you have or have had a child
  • you are a single parent and you live with your children who are under 18, or you have joint custody over children under 18 and they live with you part of the time.

In addition to your home, you own or rent an apartment near to your place of work

  • If you have a family, you can deduct the expenses for travel between your home and workplace, as well as your second home for work and workplace, according to the cheapest method of transportation available. Report them as commuting expenses. You are also entitled to the deduction for a second home for work.
  • If you do not have a family and you have two homes, the one closer to your workplace is considered your permanent home for tax purposes. You can only deduct the expenses for commuting between this home and your workplace. Expenses for travel from other places are not deductible.

You stay at a hotel or at your friends or family

You can deduct the expenses for travel between your home and workplace as well as between your hotel and workplace as commuting expenses. You cannot deduct the cost of the accommodation because you are on commute, not on a business trip.

Read more in the chapter 2.3 of the TTax Administration guidance for the deduction of travel expenses in wage earner’s taxation (available in Finnish and Swedish, link to Finnish)

 

How to report the deductions on your tax return

Table on how to report deductions
Deduction How to report
Workspace deduction
  • In MyTax, stage 4 Other deductions – Expenses for the production of income – Workspace deduction
    • If you work remotely for more than 50% of the time, select No workspace organised by the employer.
    • If you work remotely for no more than 50% of the time, select Workspace for acquiring income part-time.
  • Form 50A, Earned income and deductions, section for Expenses incurred in acquiring or maintaining wage income – Home office deduction
Workspace furniture
Work tools, such as monitor and keyboard
  • In MyTax, stage 4 Other deductions – Expenses for the production of income – Work tools
  • Form 50A, Earned income and deductions, section for Expenses incurred in acquiring or maintaining wage income – Work-related equipment.
Data connections
Travel expenses