What is the Expense Reimbursement policy in Finland?



Modified on: Tue, 27 Jan, 2026 at 5:01 PM

This article outlines the rules for tax‑free business expense reimbursement in Finland, including mileage rates, travel rules, documentation requirements, per diem allowances, and taxability standards based on the Finnish Tax Administration’s 2025 guidance.

1. Travel & Mileage (2025 Rates)

According to the Finnish Tax Administration (Verohallinto), the following rates apply:


Mileage – Private Vehicle (Tax‑Free Rates 2025)

  • €0.57 per km – personal car
  • €0.32 per km – motorcycle
  • €0.21 per km – bicycle or electric bicycle


Additional Allowances (Add‑Ons)

Employees may receive supplementary tax‑free allowances when applicable:

  • + €0.04/km – towing a trailer
  • + €0.07/km – transporting heavy items (≥ 80 kg)
  • + €0.08/km – transporting additional passengers
  • + €0.12/km – using a van or minibus

Any mileage paid above these official rates becomes taxable income.

Parking & Tolls

  • Must be submitted separately from mileage.
  • Receipts required for reimbursement.


2. Business Travel Requirements

Finland does not impose formal “caps,” but tax‑free reimbursement is valid only when:

  • Travel is work‑related and outside the employee’s normal workplace.
  • A travel diary or expense report is completed.
  • Evidence is provided:
    • Receipts (for actual expenses), or
    • Kilometre logs (for mileage claims).


Two‑Year Rule (Secondary Workplace)

If an employee travels repeatedly to the same location for more than 2 years, the destination may become a secondary workplace, and the travel reimbursements may become taxable.


3. Transportation Rules

All transportation modes are allowed if business‑justified:

  • Air travel – economy class unless otherwise contractually agreed

  • Train, bus, ferry, metro, tram – reimbursable with receipts

  • Taxi – allowed for:

    • Early/late travel
    • Limited public transport
    • Transporting heavy equipment
    • Business urgency
      Receipt required (digital acceptable).

  • Rental cars – allowed with:

    • Business justification
    • Rental invoice
    • Fuel receipts

Digital receipts are fully accepted in Finland.


4. Invoicing & Documentation Requirements

A valid expense claim in Finland must include:

  • Supplier name
  • Date of purchase
  • Items/services purchased
  • Amount paid
  • VAT breakdown (if applicable)
  • Payment method
  • Business purpose
  • Travel report or kilometre log (for travel/mileage)

Adding the supplier’s Business ID (Y‑tunnus) is recommended but not mandatory for tax‑free reimbursement.

Employer Entity for Invoices: Horizons Global Technology Finland Oy


Mileage

  • Requires km‑log, not receipts.


5. Tax‑Free Reimbursable Expenses (Examples)

When properly justified and documented, the following can generally be reimbursed tax‑free:

  • Air, train, bus, taxi, ferry transportation
  • Mileage according to official 2025 rates
  • Parking and tolls
  • Hotel/accommodation costs
  • Meals during business travel (per diems)
  • Work‑related equipment (if employer-owned)
  • Phone/internet used for work (business portion)
  • Safety equipment, protective clothing, or required tools


6. Per Diem Allowances (2025)

Per diems (daily allowances) are tax‑free when the employee meets the time/distance criteria and completes a travel report.


Domestic Per Diem – 2025

  • €51 per day – full daily allowance
  • €24 per day – partial daily allowance


Conditions:

  • Trip lasts > 6 hours → partial allowance
  • Trip lasts > 10 hours → full allowance
  • Travel is > 15 km from both the home and primary workplace


International Per Diems – 2025

  • Vary by country (e.g., Sweden ~€72/day, Germany ~€71/day, USA ~€88/day).
  • Full official list published annually by Verohallinto.


Tax-Free Only If:

  • Travel report completed
  • Distance and time thresholds met
  • Meal reductions applied when meals are provided (reduces per diem)


7. Entertainment, Gifts & Team Expenses

Business Entertainment

Tax‑free only when:

  • Directly linked to business/client work
  • Reasonable in cost
  • Supported by:
    • Client names
    • Business purpose
    • Receipt


Gifts

  • ≤ €35 (excl. VAT) typically considered allowable business gifts
  • Higher amounts may become taxable benefits


Team Meals / Events

  • Allowed if work‑related
  • Purely social events without work relevance → taxable benefit


8. Wellness, Health & Personal Expenses

Generally taxable unless:

  • Required by law (e.g., mandatory safety or medical checks)
  • Employer-approved ergonomic/work equipment
  • Accident insurance mandated by regulations


Typically Taxable:

  • Gym memberships
  • Yoga or wellness classes
  • Massage
  • Swimming


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