Finland raises sports and cultural benefit to 540 euros, expands usage

Finland is significantly enhancing its employee benefits package by raising the tax-exempt sports and cultural allowance. The maximum amount employees can receive will jump from 400 euros to 540 euros. This increase is accompanied by a notable expansion in what the benefit can cover.

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In the future, if you want to buy, for example, a fishing course, you may be able to pay for it with the benefit.

Previously, the interpretation of tax regulations limited the use of this benefit. However, the updated guidelines now permit its application to a broader spectrum of activities. This includes nature-based hobbies such as fishing and hunting, alongside gym programs and the rental of sports equipment. "In the future, if you want to buy, for example, a fishing course, you may be able to pay for it with the benefit," explained Tomi Viitala, lead tax specialist at the Central Chamber of Commerce.

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Some people think of strenuous exercise as the only form of physical activity, but there are many types of movement. I consider it consistent that moving in nature is exercise just like any other. It's good that the legislation is keeping pace.

Viitala views this reform as a welcome development that better reflects contemporary lifestyles. "Some people think of strenuous exercise as the only form of physical activity, but there are many types of movement. I consider it consistent that moving in nature is exercise just like any other. It's good that the legislation is keeping pace," he stated. The change is expected to benefit companies in the sports and wellness industry by potentially increasing demand for diverse services and encouraging employees to explore new recreational pursuits.

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This is a cat-and-mouse game. Now that these have been achieved, someone might think, why isn't my alpaca safari accepted?

Despite the positive changes, Viitala cautioned that some ambiguities may persist in the tax regulations. "This is a cat-and-mouse game. Now that these have been achieved, someone might think, why isn't my alpaca safari accepted?" he remarked. The benefit primarily targets activities requiring physical exertion to promote fitness, well-being, and health. However, drawing lines between activities like ice swimming and saunas, or differentiating between renting a city bike versus an electric scooter, will likely lead to further interpretation questions. "There will be a lot of interpretation issues, but that's how taxation is!" Viitala added.

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There will be a lot of interpretation issues, but that's how taxation is!