November 2017
Education in the “interest of the employer” will be tax exempt as from 2018
The Finnish Parliament has approved the Government Bill for the amendment of the Finnish Income Tax Act. Until now, there has not been any specific stipulation concerning the taxation of employer-provided education. The costs of basic or higher education reimbursed by the employer have been generally deemed as a taxable benefit for the employee. There are, however, various tax practises on this matter.
Under the new Article 69b of the Finnish Income Tax Act, the employer may reimburse the employee for the costs of the education tax-free if this takes place “in the interest of the employer”. As a result of this amendment to the law, an employer may more often provide tax-free educational assistance to the employee. This would also comprise e.g. reimbursement of fees for tuition, leading to a degree.
Under the new Article 69b of the Finnish Income Tax Act, the employer may reimburse the employee for the costs of the education tax-free if this takes place “in the interest of the employer”. As a result of this amendment to the law, an employer may more often provide tax-free educational assistance to the employee. This would also comprise e.g. reimbursement of fees for tuition, leading to a degree.
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The information in this site has been prepared for general informational purposes only and it should not be used as a substitute for consultation with a professional tax, legal or other competent advisor. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Effektiivi Oy is not responsible for any errors or omissions, or for the results obtained from the use of this information.
The information in this site has been prepared for general informational purposes only and it should not be used as a substitute for consultation with a professional tax, legal or other competent advisor. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Effektiivi Oy is not responsible for any errors or omissions, or for the results obtained from the use of this information.
