Tax-exempt allowances in 2023 for business travel

Date of issue
11/16/2022
Record no.
VH/5811/00.01.00/2022
Validity
1/1/2023 - Until further notice

Decision of the Tax Administration on tax-exempt allowances for travel expenses in 2023

— English translation —

Under § 73 and § 75.2 of Income Tax Act (tuloverolaki) of 30 Dec 1992 (1535/1992), including the amendments by Act no 504/2010 and by Act no 1246/2013, the Finnish Tax Administration has set out the following:

§ 1

The criteria for and amounts of allowances for travel expenses, to be considered exempt from tax in the 2023 taxation, shall be as prescribed in this decision below.

§ 2

Travel expenses are the costs arising from a taxpayer's business travel in the territory of Finland or other countries.

§ 3

Business trips mean any short-term trips by an employee in performing his duties to a place where he temporarily performs working tasks or conducts business, distinct from his regular place of work. If, because of the nature of his work, the employee has no regular place of work, any short trip by employee from home to a temporary place of employment is a business trip.

Furthermore, trips under the following circumstances are also regarded as business trips:

  1. Location of the workplace is elsewhere than inside the facilities or establishments that belong to the employer or to a closely related corporate entity within the employer’s sphere of interest;
  2. Work falls into the definition of temporary work under § 72 a, Income Tax Act (tuloverolaki);
  3. Location is at a distance exceeding 100 kilometres from the taxpayer’s home;
  4. Taxpayer has stayed overnight, due to the trip to the workplace, in temporary quarters, which are necessary because of the distant location of the workplace.

Nevertheless, travelling or commuting between home and regular place of work is not considered a 'business trip' or 'travelling in business'. This also concerns weekend travel or other similar travel between home and a temporary place of employment, during a longer work assignment spanning several work weeks.

If it is typical for the line of work that the location of employment changes frequently because of the short-term nature of work in the particular sector, daily travel from home to a temporary 2 location will only make the employee eligible to receive allowances for 'travel expenses proper' referred to in §7, §8 and §9 below, if the employee has no main or regular place of work. The employee shall, however, also be entitled to meal money (§14) if he has no opportunity to benefit from meal services arranged by his employer on the temporary location or in its immediate vicinity.

§ 4

Travel made otherwise than as referred to in section 3, paragraphs 1 and 2, by an employee to his secondary workplace, only makes the employee eligible to receive allowance for 'travel expenses proper' (see §7, §8 and §9), and to receive allowance for accommodation (see §16). Secondary workplace means such ordinary establishment of the employer, or another corporation within the same sphere of interests with the employer, which is situated in another area, or another state, than the employee’s primary, main or regular place of work.

Travelling to and from an employee’s separate accommodation and his secondary workplace does not entitle the employee to receive allowance for 'travel expenses proper' when the separate accommodation is necessary because of the location of the secondary workplace.

§ 5

The main or regular place of work is the employee’s permanent place of employment. If, owing to the itinerant nature of his work, the employee has no permanent place of employment, the main or regular place of work is considered the place where he receives his assignments and keeps the clothes, tools or materials that he uses in his work, or any other location with a similar function in respect of the performance of his duties.

§ 6

A day of travel means a period of no more than 24 hours beginning from the time that the employee sets out on a business trip from his workplace or home. A day of travel ends when the employee returns from a business trip to his workplace or home.

§ 7

Allowance for travel expenses proper to be paid for business travel means reimbursement for tickets for travel, seats or sleeping car berths and other comparable expenses directly related to travel.

Allowance for travel expenses proper also includes costs for the transport of tools and other such equipment that the employee must take with him.

§ 8

The maximum allowance for travel expenses, payable for the business travel of the employee using transport other than a motor vehicle owned or held by him is the amount spent on travel expenses proper, demonstrated with tickets provided by the transport company or other reliable proof.

§ 9

The maximum allowance for an employee’s business travel using a means of transport owned or held by him shall be:

Table of maximum allowance for an employee’s business travel
Vehicle (means of transport) Maximum allowance amounts per Km
Passenger car

53 cents, raised by:

  • 9 cents for towing a trailer.
  • 14 cents, if performance of the duties-at-hand requires towing a caravan attached to the car.
  • 27 cents, if performance of duties requires towing a mobile canteen or other comparable heavy load attached to the car.
  • 4 cents for transporting machinery or other items in the car; weighing over 80 kilograms, or of large size.
  • 4 cents, if performance of duties requires the employee to transport a dog in the car
  • 11 cents for actual kilometers driven on forest roads or road construction sites closed to other traffic if performance of duties so requires.
Motorboat, up to 50 hp 93 cents
Motorboat, more than 50 hp 135 cents
Snowmobile 129 cents
All-terrain quadbike 121 cents
Motorcycle 41 cents
Moped 22 cents
Other means of transport 13 cents.

If other persons, for whose transport the employer is responsible, travel in a vehicle owned or held by the employee, the maximum allowance referred to in paragraph 1 is raised by 4 cents per Km and passenger.

If an employee, enjoying the company car benefit known as the limited benefit (käyttöetu; förmån att använda bil), referred to in the official decision of the Tax Administration on benefits-in-kind, uses the company car for business travel and pays for the energy to run the vehicle, he is entitled to a kilometer allowance of no more than 14 cents per Km.

§ 10

Per diem, i.e. daily allowance means coverage for a reasonable increase in meal expenses and other living expenses incurred by the employee during business travel. Thus, per diem does not include allowance for travel expenses proper or accommodation expenses.

§ 11

Per diem is payable only for such a day when the temporary place of employment is located more than 15 Kms away from either the employee’s main or regular workplace or his home, depending on where the travel begins. Moreover, the temporary place of employment should be more than 5 Kms away both from the main or regular workplace and from home.

§ 12

Depending on the duration of a business trip, the maximum per diem amounts are the following

Table of maximum per diem amounts
Duration of trip Maximum per diem
More than 6 hours (partial amount) €22.00
More than 10 hours (full amount) €48.00
and, if travel time exceeds the last full day of travel:
- by at least 2 hours
€22.00

- by more than 6 hours

€48.00

For any day of travel, when the employee receives free meals, or meals included with the travel ticket, the maximum per diem is half the amount specified in paragraph 1. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.

§ 13

The maximum per diems payable for business travel outside Finland are as follows:

Table of maximum per diems payable for business travel outside Finland
Country or region Maximum per diem €
Afghanistan 55.00
Albania 71.00
Algeria 74.00
Andorra 59.00
Angola 73.00
Antiqua and Barbuda 95.00
Argentina 45.00
Armenia 62.00
Aruba 74.00
Australia 77.00
Austria 75.00
Azerbaidzhan 68.00
Azores 67.00
Bahamas 92.00
Bahrain 86.00
Bangladesh 68.00
Barbados 90.00
Belarus 66.00
Belgium 74.00
Belize 54.00
Benin 45.00
Bermuda 94.00
Bhutan 52.00
Bolivia 49.00
Bosnia and Hercegovina 52.00
Botswana 46.00
Brazil 77.00
Brunei 46.00
Bulgaria 59.00
Burkina Faso 40.00
Burundi 54.00
Cambodia 72.00
Cameroon 55.00
Canada 86.00
Canary Islands 70.00
Cape Verde 44.00
Central African Republic 96.00
Chad 56.00
Chile 55.00
China 82.00
- Hong Kong 92.00
Colombia 55.00
Comoros 38.00
Congo (Congo-Brazzaville) 62.00
Congo, Democratic Republic of
(Congo-Kinshasa)
50.00
Cook Islands 69.00
Costa Rica 60.00
Côte d’Ivoire, Ivory Coast 77.00
Croatia 65.00
Cuba 52.00
Curaçao 60.00
Cyprus 63.00
Czech Republic 82.00
Denmark 77.00
Djibouti 85.00
Dominica 64.00
Dominican Republic 58.00
East Timor 51.00
Ecuador 65.00
Egypt 73.00
El Salvador 59.00
Eritrea 95.00
Estonia 72.00
Eswatini 41.00
Ethiopia 43.00
Faroe Islands 60.00
Fiji 56.00
France 74.00
Gabon 88.00
Gambia 50.00
Georgia 48.00
Germany 71.00
Ghana 41.00
Greece 66.00
Greenland 61.00
Grenada 76.00
Guadeloupe 51.00
Guatemala 78.00
Guinea 82.00
Guinea-Bissau 38.00
Guyana 53.00
Haiti 55.00
Honduras 59.00
Hungary 56.00
Iceland 89.00
India 64.00
Indonesia 61.00
Iran 122.00
Iraq 65.00
Ireland 73.00
Israel 100.00
Italy 72.00
Ivory Coast, Côte d’Ivoire 77.00
Jamaica 64.00
Japan 70.00
Jordania 96.00
Kazakhstan 51.00
Kenya 85.00
Korea, Democratic People's
Republic (North Korea)
75.00
Korea,
Republic of (South Korea)
85.00
Kosovo 52.00
Kuwait 86.00
Kyrgystan 42.00
Laos 35.00
Latvia 69.00
Lebanon 122.00
Lesotho 37.00
Liberia 71.00
Libya 53.00
Liechtenstein 77.00
Lithuania 68.00
Luxembourg 74.00
Madagascar 46.00
Madeira 66.00
Malawi 69.00
Malaysia 54.00
Maldives 71.00
Mali 43.00
Malta 67.00
Marshall Islands 67.00
Martinique 54.00
Mauritania 53.00
Mauritius 53.00
Mexico 71.00
Micronesia 60.00
Moldova 64.00
Monaco 92.00
Mongolia 44.00
Montenegro 61.00
Morocco 69.00
Mozambique 55.00
Myanmar (formerly Burma) 61.00
Namibia 40.00
Nepal 53.00
Netherlands 80.00
New Zealand 75.00
Nicaragua 51.00
Niger 49.00
Nigeria 81.00
North Macedonia 56.00
Norway 76.00
Oman 79.00
Pakistan 31.00
Palau 94.00
Palestinian territory 86.00
Panama 65.00
Papua New Guinea 79.00
Paraguay 39.00
Peru 51.00
Philippines 70.00
Poland 64.00
Portugal 68.00
Puerto Rico 72.00
Qatar 81.00
Romania 62.00
Russian Federation 69.00
- Moscow 85.00
- St. Petersburg 78.00
Rwanda 40.00
Saint Kitts and Nevis 70.00
Saint Lucia 86.00
Saint Vincent and the Grenadines 86.00
Samoa 60.00
San Marino 62.00
Sao Tome and Principe 101.00
Saudi Arabia 83.00
Senegal 55.00
Serbia 66.00
Seychelles 93.00
Sierra Leone 53.00
Singapore 79.00
Slovakia 73.00
Slovenia 68.00
Solomon Islands 63.00
Somalia 87.00
South Africa 55.00
South Sudan 119.00
Spain 72.00
Sri Lanka 34.00
Sudan 50.00
Suriname 74.00
Sweden 66.00
Switzerland 91.00
Syria 98.00
Tadzhikistan 39.00
Taiwan 73.00
Tanzania 59.00
Thailand 65.00
Togo 54.00
Tonga 59.00
Trinidad and Tobago 84.00
Tunisia 59.00
Turkey 38.00
- Istanbul 39.00
Turkmenistan 92.00
Uganda 50.00
Ukraine 62.00
United Arab Emirates 84.00
United Kingdom 73.00
- London and Edinburgh 77.00
United States 92.00
- New York, Los Angeles, Washington 100.00
Uruguay 56.00
Uzbekistan 35.00
Vanuatu 70.00
Venezuela 100.00
Viet Nam 74.00
Virgin Islands (USA) 66.00
Yemen 122.00
Zimbabwe 75.00
Zambia 70.00
Any other country, not specified above 53.00

The per diem allowance concerns one day of travel i.e. 24 hours from the beginning of a business trip or 24 hours from the end of the preceding day of travel.

The maximum amount of per diem is defined on the basis of the country or region where the day of foreign travel ends. If the day of travel ends on a ship or airplane, the amount should be based on the country from where the ship or airplane last departed or, if leaving Finland, where it will first arrive.

Upon returning to Finland, the employee is entitled to half of the per diem for foreign travel paid for the last completed day of travel if the length of the business trip exceeds, by more than two hours, the last full day of travel that ended in foreign territory or in a ship or airplane departing from such territory.

If the length of a business trip exceeds, by more than ten hours, the last full day of travel, which ended in foreign territory or in a ship or airplane departing from such a territory, the employee is entitled to a per diem for foreign travel for the last full day of travel. The maximum amount payable for a day of travel or part thereof beginning after the employee returns to Finland must be determined as prescribed above in § 12.

For any business trip in foreign countries lasting a minimum of 10 hours, the employee is entitled to the confirmed amount for the relevant country. If the total duration of the trip is shorter than 10 hours the amount should be paid in accordance with the provisions and amounts applicable to domestic travel.

If the employee receives free meals or meals included in the price of a ticket or a hotel room the per diem must be reduced by 50 percent. For the purposes of calculation of per diems for foreign travel, two free meals constitute ‘free meals’.

If a business trip outside Finnish territory is made, the work being done under exceptional circumstances at the request of an employer located in Finland, and if the employee returns to Finnish territory for the night, and no per diem is being paid under § 12 above, the maximum allowance for business travel, by derogation from subparagraph 1 above is €18.00.

§ 14

Meal money can only be paid if no per diem is being paid, and the work assignment prevents the employee from having a meal at his normal eating-place during his meal break. The maximum amount is confirmed as €12.00.

If the employee has to have two meals at a place other than his normal eating-place during a business trip and no per diem is being paid the maximum meal money equals €24.00.

§ 15

The maximum allowance for accommodation payable over and above the per diem is the amount shown on a receipt or other reliable written proof provided by the accommodation establishment.

§ 16

The maximum allowance for accommodation payable, over and above the allowance for travel to the secondary workplace, is the amount shown on a receipt provided by the accommodation establishment, or a reasonable amount shown on other reliable written proof.

§ 17

An allowance for night travel is payable only if at least 4 hours (during a day of travel for which the employee is entitled to a per diem) are between the hours of 09:00 PM and 07:00 AM and if the employer does not arrange any free accommodation for the employee or pay him allowance for accommodation or for a sleeping car berth. The maximum allowance for night travel is €15.00.

§ 18

Seafarers: The foregoing provisions on allowances for travel expenses are applicable to the tax-exempt allowances under the law, payable to taxpayers earning seafarer’s income.

§ 19

This decision comes into force on January 1, 2023 and is applicable to business travel or part thereof taking place in 2023.

Page last updated 11/16/2022