The kilometer and per diem allowances for 2024
The maximum allowance for an employee’s business trip using a passenger car is 57 cents per Km.
For partial per diem (trips longer than 6 hours) the maximum allowance is 24 euros. For full per diem (trips longer than 10 hours) the maximum allowance is 51 euros. For meal money, the maximum allowance is 12,75 euros per meal.
Changes to Fringe Benefits in 2024
The Finnish government has made decisions on the taxation of fringe benefits for the year 2024. The changes affect the value of car allowances, meal allowances, and the maximum amounts of tax-free compensation.
Car Allowance
The value of car allowances will increase in 2024 due to the rise in interest rates.
A (2022-2024):
Free car allowance: 1.5% of the car’s purchase price or €300 per month, or 20 cents per kilometer. Use-only car allowance: €105 per month, or 7 cents per kilometer.
B (2019-2021):
Free car allowance: 1.2% of the car’s purchase price or €315 per month, or 21 cents per kilometer. Use-only car allowance: €120 per month, or 8 cents per kilometer.
C (2018 or earlier):
Free car allowance: 0.9% of the car’s purchase price or €330 per month, or 22 cents per kilometer. Use-only car allowance: €135 per month, or 9 cents per kilometer.
Meal Allowance
The tax value of the meal allowance will increase slightly in 2024.
The following are the new tax values for the meal allowance:
- Regular meal allowance: €8.50 (€8.00)
- Meal ticket (not contract catering): 75% of the cost, up to a maximum of €13.50 (€12.70)
- Institutional meal allowance: €6.37 (€6.00)
- Supervision meal allowance: €5.10 (€4.80)
- Hotel & restaurant + flight meal allowance: €7.22 (€6.80)
Telephone Allowance
The tax value of a telephone is still €20 per month in 2024. A telephone allowance is tax-free if it is necessary for the performance of work.
