In-kind Benefits 2021
Any benefits in kind (fringe benefits) received from an employer in Finland or other countries are assessed on the following bases:
Accommodation and the use of electric power
The tax values of employer-provided accommodation that includes heating, in dwellings with central heating, are as follows:
|| Value of benefit, € per month
| Helsinki 1
|| €295 + €13,00 per square metre
| Helsinki 2
|| €292 + €11,90 per square metre
| Helsinki 3, Espoo, Kauniainen
|| €260 + €11,00 per square metre
| Helsinki 4, Vantaa
|| €209 + €11,00 per square metre
| Jyväskylä, Kuopio, Lahti, Oulu, Tampere,
Turku, other Helsinki metropolitan area, other Helsinki
| €193 + €9,00 per square metre
| Other regions of Finland
|| €168 + €8,10 per square metre
The apartments in 'Helsinki 1 to 4' districts are divided by zip code and can be found at vero.fi. The 'other Helsinki metropolitan area' refers to employer-provided accommodation in Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Nurmijärvi, Riihimäki, Sipoo, Tuusula and Vihti.
By way of derogation from subsection 1, the tax value of accommodation in a dwelling referred to in the Act on the Use, Assignment and Redemption of State-Subsidised Rental Dwellings and Buildings (Aravarajoituslaki 1190/1993) should not exceed the amount of rent charged for the dwelling.
The value of the benefit received in a foreign country under § 76, subsection 1.5, of Income Tax Act (Tuloverolaki), equals the current rent of the dwelling, but not more than 50 percent of the current taxable benefit value of a dwelling referred to in subsection 1, located in 'Helsinki 2' districts.
If a travel agent or travel service employee, pursuant to a clause in his employment contract to that effect, is prepared to relocate as necessary, and during work in a foreign country, the employer requires that the employee change his/her accommodation and location of work, the valuation of the benefit arising from employer-provided accommodation must be based on a dwelling size of 25 square metres.
If the employee himself pays for heating in a centrally-heated dwelling, the value is reduced by €1.21 per square metre and month.
When the employer provides unlimited use of electric power to the employee in addition to accommodation, it is valuated as €0.89 per square metre and month. This value does not include electric heating. For purposes of valuation, accommodation with electric heating is equated with accommodation with central heating.
For purposes of valuation, the floor area is deemed to comprise not only the actual living space but also the facilities used by the employee or his family, such as a sauna, a swimming pool and a hobby room. Nevertheless, a garage is not included in the floor area.
If the taxpayer had employer-provided accommodation during the previous year and its valuation for the current year makes it more expensive, its actual fringe-benefit value cannot be raised by more than 20 percent compared to that of the previous year.
The value of a heated garage or an indoor space in a parking structure is €86.00 per month in the 'Helsinki 1 to 4' districts, in Espoo, Kauniainen and Vantaa and €56.00 elsewhere in Finland. An unheated garage or indoor parking space is valued at €56.00 per month in the 'Helsinki 1 to 4' districts, in Espoo, Kauniainen and Vantaa and at €45.00 per month elsewhere in Finland.
Employer-provided meals are valued at €6,90 per meal if the employer's direct costs including VAT for providing this benefit are at least €6,90 but not more than €10,90. If direct costs including VAT are less than €6,90 or more than €10,90, the valuation of this benefit must reflect the actual costs including VAT.
Direct costs include the raw materials used in preparing the meal plus preparation and serving wages including social security costs. If the employer has agreed with a restaurant on furnishing meal services for the staff, the amount paid by the employer to the restaurant for the meal is the direct cost. Delivery costs of the meals to the place where the employees eat are not included in direct costs.
If employees pay back an amount of money to the employer for meals, it is not taken into account when direct costs are calculated, but it is subtracted from the tax value of the meal benefit.
If an employee or his family uses the employer's passenger car or van for private driving, this gives rise to a taxable company car benefit (In Finnish: autoetu). When verifying the company car benefit, using the car for travelling between home and the workplace is also considered private use.
If the employer pays all the expenses, the benefit is an Unlimited Benefit.
If the employee at least pays for the energy to run the vehicle, it is a Limited Benefit (Auton käyttöetu / Förmån att använda bil).
Value of the company car benefit
The tax value is based on the year when the vehicle was put on the road, as recorded in its registration document, as follows:
a) Age group A (Vehicles put into service 2019 to 2021)
Unlimited benefit: The monthly value of the benefit equals 1.4 per cent of the replacement price of the vehicle; plus €270.00, or alternatively, 18 cents per kilometre.
Limited benefit: The monthly value of the benefit equals 1.4 per cent of the replacement price of the vehicle; plus €105.00, or alternatively, 7 cents per kilometre.
b) Age group B (Vehicles put into service 2016 to 2018)
Unlimited benefit: The monthly value equals 1.2 per cent of the replacement price of the vehicle; plus €285.00, or alternatively, 19 cents per kilometre.
Limited benefit: The monthly value equals 1.2 per cent of the replacement price of the vehicle; plus €120.00, or alternatively, 8 cents per kilometre.
c) Age group C, (Vehicles put into service before 2016)
Unlimited benefit: The monthly value equals 0.9 per cent of the replacement price of the vehicle; plus €300.00, or alternatively, 20 cents per kilometre.
Limited benefit: The monthly value equals 0.9 per cent of the replacement price of the vehicle; plus €135.00, or alternatively, 9 cents per kilometre.
Company car benefit received in another country (Vehicles put into service before 2008):
||Value based on a driver's log or other reliabl record provided by the taxpayer or the tax authorities
||€ per month
€ per month
+ value per kilometre, € per month
In the case of all-electric vehicles that run entirely on electricity, the taxable value of an unlimited company-car benefit is reduced, by subtracting either 8 cents per kilometre, or alternatively, €120 from the monthly value.
The employee should substantiate the values based on kilometres by keeping records, such as a driver's log.
Tax authorities may revaluate the taxable value of the company car benefit in the final assessment if the kilometres relating to private driving obviously exceed 18,000 kilometres.
If the employee uses different vehicles during the month because of the nature of his work, the basic value of the benefit should be based on the characteristics of the vehicle used most of the time.
Basic value refers to the percentage value calculated from the recommended retail price of the car.
'Replacement price' means the general recommended retail price of the make and model, quoted at the date of purchase by the importer or by the wholesale dealer if no importer's quote is available, less €3,400.00. However, if no such recommended retail price is known for a vehicle put on the road in 2015, and for vehicles put on the road before 2015, 'replacement price' means the general recommended retail price of the make and model, quoted at the start of the calendar month when the vehicle was put on the road, by the importer or by the wholesale dealer if no importer's quote is available, less €3,400.00. The percentages referred to in § 17 are calculated on this adjusted price. The resulting amount is rounded down to the nearest 10 euros.
Any automotive accessories are included in the valuation except the usual winter tires and a car telephone. A car telephone, if installed, is valued similarly as a mobile-phone benefit.
The value of accessories is added to the car's replacement price insofar as their value exceeds €850.00. However, if any rebate granted to the employer on the accessories exceeds the ordinary cash rebate or the equivalent, the value of the accessories should be equated with their usual recommended retail prices.
The value of the company car benefit is increased by €465 per month or 31 cents per kilometre if a driver engaged by the employer takes charge of the driving.
Compensation from the wage earner
The compensation paid by the wage earner to the employer for the car's expenses is deducted from the monetary value of the company car benefit or the limited benefit.
The driver's log
The driver's log referred to in § 17 must show the daily kilometre count of the employer-provided vehicle during the tax year. The following facts regarding work-related driving must be entered daily in driver's log:
- Start and end hours,
- Start and end locations, and the route driven, as necessary,
- Odometer readings at start and end,
- Distance travelled,
- Purpose of trip, and
- Name of user of vehicle.
The value of a benefit resulting from an employer-provided telephone at an employee's home (a stationary, fixed telephone line) is €20.00 per month. This value covers expenses arising from telephone calls.
The value of an employer-provided mobile (cellular) phone is €20.00 per month. This value covers expenses arising from telephone calls, SMS or text messages and multimedia messages.
Application of fair market value
Any fringe benefit must be valued at its fair market value if it is not listed above, or if its fair market value, under the circumstances that prevail, is evidently lower than the value under this Decision. If employees pay back an amount of money to the employer for a received benefit, this amount must be subtracted from the tax value of the benefit.
The taxable value of a benefit that has no taxable value specifically verified in the law or in the fringe benefit decision of the Finnish Tax Administration is a valid price for the benefit. This usually refers to expenses caused to the employer from acquiring the benefit.