Changes to Taxation and Employee Benefits in 2025
The year 2025 brings changes to taxation and employee benefits. We have compiled the key updates that will affect employers, employees, and consumers alike.
Employee Benefits (1)
The tax benefit for zero-emission company cars remains in effect, and the €170 monthly reduction in taxable value will be valid until 2029.
The tax exemption for employer-covered relocation costs is expanding. Moving forward, expenses covered by the employer, such as moving and travel costs as well as assignment travel insurance, will be fully tax-free if the relocation is due to the location of the workplace.
Travel Expense Reimbursements in 2025 (2)
Below is a brief summary of key changes in travel expense reimbursements. Additional details and other decisions can be found on the Tax Administration’s website.
- Full per diem: €53 (2024: €51)
- Partial per diem: €24 (same as in 2024)
- Meal allowance: €13.25 (2024: €12.75)
- Mileage reimbursement: 59 cents/km (2024: 57 cents/km)
Corporate Taxation (3)
There will also be changes in corporate taxation. For example, the employer’s training deduction will be removed, and fairway dues will be restored in full.
Additionally, modifications are expected for investment tax credits. Preparations for a tax credit for major net-zero-related investments are ongoing, with the goal of implementing it by January 1, 2025. The applicability of the tax credit will be expanded as much as possible within the EU’s crisis and transition framework and the fiscal policy decisions made in Finland.
Value-Added Taxation (1)
As of early 2025, products and services previously subject to a reduced VAT rate of 10% have been moved to the 14% VAT bracket. This change took effect on January 1, 2025, but it does not apply to newspapers, magazines, or public broadcasting. Additionally, menstrual and incontinence products, as well as children’s diapers, were moved from the previous general VAT rate of 25.5% to the reduced 14% rate.
Changes are planned for the VAT on candy and chocolate, set to take effect on June 1, 2025. The VAT rate is expected to increase from the current 14% to 25.5%.
Tax Cards as of January 1, 2025 (4)
The 2025 tax cards came into effect at the beginning of the year, on January 1. Previously, they took effect in early February. Moving forward, the income limit on tax cards will be calculated for the entire year. The aim of this change is to facilitate tracking both the tax percentage and income limit.
Additional Information and Sources
(1) Ministry of Finance. Key legislative changes in the Ministry of Finance’s administrative sector as of early 2025. Accessed January 22, 2025.
🔗 https://valtioneuvosto.fi/-//10623/vuodenvaihteen-2024-2025-muutoksia-vm-n-hallinnonalalla
(2) Finnish Tax Administration. Decision on tax-free travel expense reimbursements in 2025. Accessed January 22, 2025.
🔗 https://www.vero.fi/syventavat-vero-ohjeet/paatokset/47405/verohallinnon-paatos-verovapaista-matkakustannusten-korvauksista-vuonna-2025/
(3) Finnish Taxpayers’ Association. Tax changes 2025. Accessed January 22, 2025.
🔗 https://www.veronmaksajat.fi/tutkimus-ja-tilastot/suomen-verot-ja-menot/veromuutokset/verotus-2025/#416acf7f
(4) Finnish Tax Administration. What will change in taxation in 2025? Accessed January 22, 2025.
🔗 https://www.vero.fi/tietoa-verohallinnosta/uutishuone/uutiset/uutiset/2024/mik%C3%A4-muuttuu-verotuksessa-vuonna-2025/
