Fringe benefits 2016 in Finland

Fringe benefits are other than monetary compensations given by the employer to the employee as a compensation for work. These types of benefits are often ongoing or occur at frequent intervals. Finnish Tax Administration checks the calculation principles of fringe benefits annually and provides a statement of their future changes.

Here is list of the fringe benefits in 2016 and their calculation principles.

Accommodation and the use of electric power

Accommodation benefits, and the included heating expenses, tax value for a central heated apartment are as follows:

If the employer provides unlimited use of electricity, it is valued at 0,73€/m²/month. This electricity benefit does not include the costs of electric heated apartment, instead a electric heated apartments housing benefit is considered to be the same as a central heated apartment.

Employer-provided vehicles

The Tax value of a company car benefit is confirmed by the deployment year stated in the vehicles registration document.

1.   Age group A (2014-2016)

Unlimited benefit: Benefit value per. month is 1.4% of the cars asking price added with 270€ or 0.18 €/km.

Limited benefit: Benefit value per. month is 1.4% of the cars asking price added with 105€ or 0.07€/km.

2.   Age group B (2011-2013)

Unlimited benefit: Benefit value per. month is 1.2% of the cars asking price added with 285€ or 0.19 €/km.

Limited benefit: Benefit value per. month is 1.2% of the cars asking price added with 120€ or 0.08€/km.

3.   Age group C (Before 2011)

Unlimited benefit: Benefit value per. month is 0.9% of the cars asking price added with 300€ or 0.2 €/km.

Limited benefit: Benefit value per. month is 0.9% of the cars asking price added with 135€ or 0.09€/km.

4.   Company car benefit abroad, for cars bought before year 2008

Unlimited benefit: Monthly value is 744/month, Basic value is 264€/month + 0,32€/kilometer.

Limited benefit: Monthly value is 444€/month, Basic value is 264€/month + 0,12€/kilometer.

For entirely electric powered cars, the taxable value of an unlimited company-car benefit is reduced, by subtracting either 0,08€/kilometer, or alternatively, 120€/month.

Meals

The value for employer-provide meals benefit is 6,30€/meal, if the expenses and VAT of those expenses is a minimum of 6,30€ or a maximum of 10,20€. If the expense is less than 6.30€ or higher than 10.20€, the value of the benefit must reflect the actual expenses including VAT.

Employer-provided meals are valued at €4.73/meal for personnel working in a hospital, school, day care center, or other similar institution, and eating at the institution. Furthermore, the tax value of a meal for personnel supervising the mealtimes of students or patients in a school, day care center or other comparable institution is €3.78/meal.

Hotel and restaurant industry staff and flight personal meals received during flight, are valued at 5,36€/meal.

Garage

For a heated garage and indoor space, the benefit for regions Helsinki 1-4, Espoo, Kauniainen and Vantaa is 78€/month and for rest of Finland 51€/month.

For a cold garage and indoor space, the benefit for regions Helsinki 1-4, Espoo, Kauniainen and Vantaa is 51€/month and for the rest of Finland 40€/month.

Full room and board

Accommodation, meal, lighting and heating monetary value is 490€/month for one room and 470€ for shared room.

Full room and board benefit in a hotel or equivalent accommodation is valued to its current value.

The fringe benefit for a person undergoing seaman service equals to12.60€/day or a maximum of 284€/month.

Telephone

For the phone bought to home of employee by the employer, the benefit is 20€/month, this covers the phone call expenses. For the mobile phone provided by the employer, the value is 20/month, this covers the phone call, text message and multimedia message expenses.

Read more on fringe benefits from the Finnish Tax Administration.