You must have heard about the different support packages the government has granted to companies in Finland since the pandemia broke out. However, have you spotted any Covid related tax or other benefits that concern you as an individual in Finland? Well, there were only a few minor concessions to individuals. Nevertheless the way how Covid-19 affected the way we work eventually introduced other possibilities to reduce your tax liability. If the broader concept of claiming tax deductions is not yet familiar to you, you are probably just not aware of these yet.
For instance, see post: 5 Reasons why you should learn to use tax deductions
We put together what options you might have regarding tax deductions and Covid-19. In conclusion, your personal outcome depends on your place of work and incurred costs related to execute your work.
What Covid related tax benefits can you claim in Finland?
1. Home office space:
If you work from home for at least half of the working days within a tax year you are entitled to the maximum deduction for a home office. However, if the number of remote days is less, the deduction reduces according to a fixed scheme. Because Covid made people work remotely this tax deduction has come into the scope of a larger group of employees. Currently the maximum deduction for a home office is 900 € per year and the right place to claim your home office costs in the tax return is ‘Expenses for the production of income’ (Finnish: tulonhankkimiskulut). Please note that the Finnish tax authority already grants you an automatic tax deduction of 750 € for these expenses. In other words, the maximum deduction for home office costs will effectively raise your tax deduction only by 150 €.
2. Internet connection:
If you were working from home on a full time basis you can deduct the full monthly costs for your internet connection. As mentioned above you can claim these costs as ‘Expenses for the production of income’ in your tax return. Accordingly the amount deducted reduces, if the work from home was not on a full time basis.
3. Furniture and tools:
Working from home for a longer time might entitle you to deduct costs for certain acquisitions. The condition for the deduction right is naturally that the acquisitions are necessary for the execution of your work. Again, these costs are ‘Expenses for the production of income’ in your tax return.
If you commuted with public transport and used masks you had to purchase yourself you can make a tax deduction. Please see the Finnish tax authority’s instructions herefore. In the rare case you needed masks at your workplace and your employer did not purchase them for you a deduction is possible.
Summary on Covid related tax benefits in Finland
Naturally everything you specify in your tax return should be true and not made up. Keep your receipts to ensure authorities will grant you the tax benefits you plan to claim for Covid in Finland. For more details check the eBook on How to save taxes in Finland below.