Business vehicles used for work on a tax exempt basis
Submit a declaration of tax-exempt operation of a business vehicle before the vehicle is driven in Finland. If several upcoming dates have been planned when a vehicle is going to be driven, you can submit one declaration that covers one entire year. Read more about tax-exempt vehicle use.
The Tax Administration will confirm your declaration, but that does not mean that the Tax Administration has checked or confirmed that the requirements for tax-exempt operation are fulfilled. Please remember to make a check in advance of whether or not you have the right to use the vehicle exempt from tax.
If there are no valid reasons for tax-exempt driving for work purposes, your use of the vehicle is subject to tax.
You get a confirmation letter in MyTax as soon as your declaration has been confirmed. How to find the receipt:
- Open the Tasks tab on MyTax home page.
- Click on See decisions and letters.
- Choose the needed letter (pdf) frrom the mailbox.
Print the confirmation letter out on paper and keep it in your vehicle. Present it to the police or Customs if requested.
You will also receive the letter by post to your home address, unless you have activated Suomi.fi messages and chosen not to receive paper mail.
Another form for the same purpose is Form 1240 – Declaration of use of a foreign employer’s vehicle in work duties.
- After the Tax Administration has confirmed your declaration, it will be sent by post to the address you have given.
The Tax Administration’s confirmation letter contains an end date for its period of validity. You are liable to submit a new declaration again if you drive the same business vehicle at a later date.
In the same way, if the facts and information have changed that you submitted on your earlier declaration, you are liable to submit a new declaration.
Requirements of tax-exempt use
If you live permanently in Finland and the location of your place of work is outside of Finland, you can use your employer's motor vehicle to perform work tasks in Finland. Such a business vehicle can be owned or leased by your employer, and you drive it in Finland only for a purpose relating to your work.
You are entitled to drive the business vehicle exempt from tax, if:
- Your workplace is located abroad,
- The vehicle has a permanent vehicle registration in the country where your workplace is located,
- Your employer is the vehicle’s owner or your employer holds the vehicle by virtue of a lease contract, etc.,
- You drive the vehicle for max. 72 hours at a time,
- The sole purpose of your driving is the performance of your work, and
- After working in Finland, you take the vehicle along with you to the country where your workplace is located
For example, to drive the vehicle for your commute from home to work is not considered using it for work purposes.
If the requirements for tax-exempt use are not met, the vehicle is considered to have been taken into taxable use. You must submit a declaration of use and file a car tax return. Read more about filing the car tax return.
What is the difference between a company car (a fringe benefit) and a business vehicle?
Business vehicles cannot be driven for purposes other than work without having to pay Finnish car tax on the vehicle.
In contrast with that, tax-exempt operation of a company car, given to you as a fringe benefit, is not restricted to driving it for business purposes. These vehicles are driven for private purposes as well.