How is a massage benefit arranged in a limited company?

A limited company can offer its employees a tax-exempt massage benefit as part of recreational activities when the benefit is offered to the entire staff, everyone genuinely has the opportunity to use it, and the costs are reasonable. The massage benefit must be arranged through an agreement between the employer and the service provider or by using a targeted payment instrument (and choosing providers). Simply adding a receipt to the company’s accounting is not sufficient.
 

How to arrange the massage benefit

1. Offer the benefit to the entire staff.
   All employees must genuinely have the opportunity to use the benefit. However, everyone does not have to use it.
2. Choose how to arrange the benefit.
   You can arrange the massage benefit by:
   • making a direct agreement with a massage service provider, or
   • using a designated payment instrument (such as Edenred or ePassi). In this case, the company must select the massage providers where the benefit can be used, so that a contractual relationship is established between the company and the massage providers. A contract solely with the payment instrument provider is not sufficient.
3. Pay the massage service provider directly.
   The company must pay for the massage, or part of it, directly to the massage service provider or the provider of the targeted payment instrument. A payment or expense reimbursement made directly to the employee is not considered a tax-exempt massage benefit.
4. Add the company’s expense to the accounting records.
   Add a description such as “massage benefit” and the name of the employee for whom the benefit was purchased. This makes the benefit identifiable in the accounting records.
5. Add the benefit to the salary calculation in the UKKO service.
   The massage benefit can be selected on the salary calculation form in your UKKO account. Make sure that you report the benefit according to the service instructions.
    

Please also note

• The massage benefit must be customary and reasonable in cost. The Finnish Tax Administration assesses reasonableness, among other things, based on the annual cost per employee. At present, an annual massage benefit of up to €400 per calendar year is considered reasonable and tax-exempt.
• Physiotherapy is not the same as massage. According to the Finnish Tax Administration, physiotherapy is not considered tax-exempt recreational activity under the massage benefit.
• The massage benefit cannot be used as a substitute for salary or compensation for work performed.
• A shareholder who works for the limited company may receive an employee benefit even if they are the company’s only employee. Ownership alone is not sufficient; the shareholder must genuinely work for the company.
   

How to add the massage benefit expense to your accounting

1. Add the expense to your UKKO customer account as an expense.
2. Attach the original agreement with the service provider and the invoice, or the invoice received from the provider of the targeted payment instrument. Make sure that the agreement and the invoice or receipt are addressed to the limited company.
   The agreement is only required as an attachment to the first expense during the agreement period. For subsequent expenses, attaching the massage invoice is sufficient.
3. Enter the purchase details, including the company’s name and Business ID.
4. Select “Service purchases” and “Service purchased for business” as the transaction type.
5. Enter the total amount shown on the invoice or receipt and select 0% VAT.
6. Add “massage benefit” and the name of the employee for whom the benefit was purchased to the expense description.
7. Mark the expense as paid by matching it with the relevant account transaction.

The VAT included in the purchase price of the massage benefit is not deducted in the accounting records.
 

How does the massage benefit affect salary reporting?

When the benefit does not exceed €400 per year

If the massage benefit provided to an employee does not exceed €400 during a calendar year:

• the benefit is tax-exempt for the employee;
• the benefit does not need to be added to the salary calculation; and
• the benefit is not reported to the Incomes Register.

A tax-exempt massage benefit does not need to be reported to the Incomes Register.
 

When the €400 limit is exceeded

If the massage benefit provided to an employee exceeds €400 during a calendar year, only the amount exceeding €400 is taxable employment income for the employee.

In the UKKO service, you can calculate your own salary as an owner-entrepreneur and report any taxable benefits included in it. You will need:

• the total amount of massage benefits provided during the year; and
• information about the pay period to which the benefit belongs, meaning when the entrepreneur had access to the benefit.

When the tax-exempt €400 limit is exceeded, create a new salary in your customer account and report the benefits as follows:

• If you have not reported the massage benefit received earlier on previous salaries:
  • report the total amount of the benefit provided by your company during the calendar year on your salary calculation
  • The UKKO service will calculate the tax-exempt portion, and only the taxable portion will be reported to the Incomes Register. Withholding tax will also be calculated on the taxable portion.
• If you have already reported massage benefits received earlier on previous salaries:
  • report only the amount of the new benefit on your salary calculation.
  • The UKKO service will automatically add together all massage benefits reported previously and report only the amount exceeding the tax-exempt limit to the Incomes Register. Withholding tax will also be calculated on this taxable portion.

Please note that the UKKO service cannot be used to report only tax-exempt or taxable benefits for an entrepreneur. The payroll calculation must always also include salary in cash, from which any withholding tax can be deducted.

You can find more information about calculating an entrepreneur’s salary in the article How do I pay myself a salary from my limited company in the UKKO Entrepreneur service?

Salary calculations for employees and the reporting of employee benefits must always be completed in the Palkka.fi service. They cannot be reported through the UKKO service.
 

Frequently asked questions

Can I offer the massage benefit to myself in a one-person limited company?

Yes, if you work for the limited company. However, the benefit must be arranged as an employee benefit under the same conditions for all employees if other people also work for the company.
 

Is it sufficient to add the massage receipt to the accounting records?

No. A tax-exempt massage benefit requires an agreement between the employer and the massage service provider or a qualifying targeted payment instrument. An expense reimbursement paid to the employee is not treated as a tax-exempt massage benefit.
 

Is it sufficient for me to purchase massage benefits only, for example, onto an Edenred card?

No, it is not sufficient. The employer must select the massage providers that employees are allowed to use. There must be a contractual relationship between the employer and the selected massage service providers (massage clinics/providers).

Therefore, having an agreement solely with the provider of the designated payment instrument (e.g. Edenred or Epassi), without a contractual relationship with the massage service provider, is not sufficient.
 

Can the massage benefit include physiotherapy?

Not on this basis. Physiotherapy is treated differently from massage and cannot be reported as a tax-exempt massage benefit.
 

Is there an annual €400 limit for the massage benefit?

The Finnish Tax Administration’s guidance on employee benefits currently states that an annual massage benefit of up to €400 can be considered customary and reasonable at the moment.
 

If you need help

If you are unsure how to report the expense in the service, contact osakeyhtio@ukko.fi.

If possible, include the following information in your message:

• a photo or copy of the receipt;
• information about how the massage benefit was arranged;
• the name of the massage service provider;
• the amount and date related to the benefit; and
• a screenshot of the section where the problem occurs.