Matkakorvaus

Matkakorvaus is a compensation paid by an employer or organization to cover travel expenses incurred by an employee or member on work-related trips. It typically covers transportation, accommodation, meals, and incidental costs. The payment can take the form of a lump sum (per diem) or reimbursement of actual costs, and it may be paid in advance or after the trip. Documentation requirements vary: actual-cost reimbursements usually require receipts or other proof of expenditure, while per diem allowances are often provided as a predetermined rate.

In Finland, matkakorvaus is governed by national tax rules and employer policies. A travel allowance may be paid tax-free when it adheres to the Finnish Tax Administration's guidelines and the employer's documented travel policy, and when the amounts are reasonable for the trip. The tax treatment depends on whether the reimbursement reflects actual costs and whether proper substantiation is provided. If an allowance exceeds the reasonable limit, or if costs are not substantiated, the excess or the whole amount may be considered taxable income. Domestic and international travel may have different guidelines, and meals and lodging can be treated under separate provisions.

Employers typically outline a travel policy specifying eligible expenses, required documentation, per-diem rates, advance payments, and deadlines for submitting expense reports. Employees should keep records of travel dates, destinations, purposes, and receipts to ensure correct reimbursement and tax treatment.

See also: expense reimbursement, payroll taxation in Finland, per diem.