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Tax-Free Work-Related Travel Expense Reimbursements in 2024 (Finland)



Kirjoittanut: Tony Kalliala - tiimistä Empiria.

Esseen tyyppi: Yksilöessee / 2 esseepistettä.
Esseen arvioitu lukuaika on 2 minuuttia.

 

The word “reimbursement” came totally new for me in English. In Finnish it is familiar from some of my previous jobs. It basically means all the compensations paid by organizations for out-of-pocket payments made by an employee regarding the works trips or tasks.

 

This essay will explain the most common reimbursements that every entrepreneur need to know about. The types and amounts of the compensation might vary depending on the year. These ones I am going through next will be regarding the year of 2024. Enjoy!

 

Business trip

In Finnish legal terms, a business trip refers to a temporary journey made for work-related reasons. These trips are distinct from an employee’s regular place of work and are typically undertaken to perform specific work tasks at a different location. If the employee is working from a home office the business trips will be counted from the home address. (Taloustaito 2023.)

Commuting between home and a primary place of work is not considered as a business trip and the employer is not obligated to give compensation for expenses caused by the transportation. (Taloustaito 2023.)

 

Meal allowance

If you receive no daily (per diem) allowance, you can receive a tax-free allowance in the form of meal money. This allowance can only be paid if the work prevents you from having a meal at your normal eating-place during your meal break. The maximum amount of the meal money is 12,75€ a day. If you need to eat twice due to work-related reasons the employer has to pay the allowance for the both meals. (Taloustaito 2023.)

 

Daily allowance

A per diem allowance (päiväraha in Finnish) is a daily allowance provided to cover reasonable living expenses during business travel. It is intended to compensate for increased meal and other living expenses incurred due to business travel and is payable for days worked further than 15 kilometers away from the regular place of work or home. (Taloustaito 2023.)

In case the business trips duration is over 6 hours but under 10 hours the employee is eligible for a half-day allowance which is 24€/day and if it gets over 10 hours then the case is full-day allowance of 51€/day. (Taloustaito 2023.)

In legal terms there is a rule that if a travel day exceeds for a certain amount the daily allowance will rise. If it exceeds for at least 2 hours it will be raised 21€ and if over 6 hours  51€ added. (Taloustaito 2023.)

Mileage allowance

Mileage allowances are provided to cover travel-related expenses while using your own car for work-related trips. The allowance for car usage is 0,57€ per kilometer. If you have additional passengers during the trip, you can receive an extra 4 cents per kilometer per passenger if they are also associated with the same employer. You can also get extras for some other things such as having a trailer attached to your car or carrying heavy objects. (Taloustaito 2023.)

When charging mileage allowance you have to be ready to provide a clear driving log of your routes. This is important so your employer is able to accurately determine taxes and reimbursements for the Tax Administration. (Taloustaito 2023.)

Conclusion

Understanding the key factors of business-related reimbursements is essential for entrepreneurs and employees alike. Whether it’s business trips, meal allowances, or daily per diem rates, being well-informed ensures accurate financial management and compliance with legal requirements. You don’t want to get in trouble with these!

LÄHTEET

Taloustaito. (2023) Vinkit ja neuvot veronmaksajalle. Verottomat matkakustannusten korvaukset vuonna 2024. Painos 12/23, s. 30–31.

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