Kilometrikorvaus

Kilometrikorvaus is a form of reimbursement paid to an employee or contractor for using a private car in connection with work-related travel. It is intended to cover the costs and wear and tear associated with driving for business, such as fuel, maintenance, insurance, and depreciation. The payment is commonly provided by the employer, but can also be arranged by other organizations for their staff or partners.

The compensation is typically calculated based on the number of kilometers driven for work, multiplied by a per-kilometer rate. Rates are often determined by the employer or guided by national tax authorities. In practice, the employee may be required to keep a travel log or use an approved mileage record to verify the trips eligible for reimbursement. Kilometrikorvaus usually applies to business trips, client visits, and between work sites; regular commuting between home and work is generally treated differently in tax terms.

Tax and accounting treatment vary by jurisdiction and policy. In Finland, for example, tax authorities publish annual tax-free kilometre rates; reimbursements at or below the tax-free rate are typically not taxable, while amounts exceeding the limit are treated as taxable income for the employee. Some employers also allow deduction of actual travel expenses if reimbursement does not cover all costs. Accurate record-keeping and clear policy help ensure that kilometrikorvaus is compliant with tax and corporate requirements.

See also: Travel allowance, business trip, mileage log, tax treatment of reimbursements.