The employer pays a daily allowance for travel if the location of some particular work is situated at a distance exceeding 15 kilometres from the regular place of work or home of the employee. No daily allowance will be paid for travelling from home to the regular place of work, even if this distance exceeds 15 kilometres. The various daily allowances for work related travel are determined annually by the Board of Taxation. You will find the currently valid figures for these allowances on the Board of Taxation web site www.vero.fi .
The daily allowance is non-taxable income. The allowance will be reduced by 50 per cent if two hot meals have been provided during a ten hour business trip or one meal during a six hour trip.
The collective agreement for state employees contains rules on the reimbursement of travel costs for state employees. The collective agreements for other sectors may contain different terms for daily allowances. If the daily allowance and reimbursement of expenses exceed the amounts set by the Board of Taxation, then the excess will be treated as taxable income.