What are the benefits of tax credits?
Claiming tax credits save you don't pay taxes on income you've already spent as work expenses. Because it's profitable!
According to the Verohallinto in 2017 - thanks to tax credits, 3.6 million people received tax refunds in the amount of 2.9 billion euros 😀👍 🔥🔝
Almost a million people received a tax refund of more than 1,000 euros.
Most topical tax credits in Finland for individuals 1. Commuting expenses. Travel expenses and temporary work.
When you have to pay for travel expenses in order to reach your temporary place of work in Finland (more than 750 euro) - you are entitled to get the tax credit for your expenses.
If you don't ride public transportation for your commute, the calculation is based on the following values:
It is beneficial,
- €0.25 per km for driving your own car
- €0.19 per km for driving a company car
- €85.00 per year for riding a bicycle.
if you are married and have a child under 18 years of age, you can additionally claim an expenses of your trip to home on weekends, to see your family once a week.2) Second home for work.
When you are living separated from your family because of your work in Finland, you can can claim a tax credit, to cover your expenses - if all of the following requirements are met:
- if you have a family (you child under the age of 18);
- if you have rented a second home because of the location of your primary place of work;
- if your second home is located more than 100 km from your permanent home.
In 2019 and 2020, the maximum deduction is €450 per month. However, the deduction cannot be higher than the rent you pay for your second home.