How to report and pay tax-exempt travel reimbursements in a limited company?

You can use the UKKO Entrepreneur service to report and pay tax-exempt travel reimbursements to yourself, such as mileage allowances, daily allowances and, under certain conditions, meal allowances. You can submit the report even if you are not paying yourself a salary at the same time.

Create the report in UKKO Entrepreneur before paying the reimbursements from the company’s bank account.
 

Before you start

Make sure that:

• the reimbursements are paid to you as the owner-entrepreneur of the limited company
• the trip was made on behalf of the company
• the reimbursements meet the Finnish Tax Administration’s requirements for tax exemption
• you have completed a travel expense report or another corresponding account of the trip
• you have the vehicle registration number and the number of kilometres driven, if needed.

The amounts and conditions for tax-exempt reimbursements may change annually. Check the current amounts and conditions in the Finnish Tax Administration’s instructions.
 

How to report and pay the reimbursements

1. Create a new salary payment in your customer account.
2. Enter the pay period and the payment date.
3. Check the entrepreneur’s details, such as their name, address, bank account number and tax card information.
4. Enter EUR 0 as the cash salary.
5. Add each reimbursement on its own line:
   • full daily allowances
   • partial daily allowances
   • foreign daily allowances
   • mileage allowances
   • meal allowances.
6. Enter the number of kilometres driven when adding a mileage allowance.
7. Attach the completed travel expense report as an Excel file to the salary request.
8. Check the summary and create the payslip.
9. Pay the amount shown on the payslip from the company’s bank account to yourself on the payment date.
10. Match the payment made from the company’s bank account with the salary document created in your customer account.

Tax-exempt travel reimbursements must be reported to the Incomes Register using the appropriate income types. Report the reimbursements no later than the fifth day of the month following the payment month.
 

How to complete the travel expense report

You can use the travel expense report template attached to this article or prepare another corresponding document (template is also available in your UKKO account, reports and documents -section).
 

Mileage allowances

Include at least the following information:

• who travelled
• the purpose of the business trip
• the date of the trip
• the departure point and destination
• the exact route
• the duration of the trip
• the vehicle used and its registration number
• the names of any people who travelled with you for business purposes.
   

Daily allowances

Also include:

• the destination country
• the start and end times of the trip
• the travel dates
• the type of daily allowance claimed, such as a full daily allowance, partial daily allowance or foreign daily allowance
• the amount claimed.

The tax-exempt status of a daily allowance depends on factors such as the duration of the trip, the distance travelled and the circumstances of the business trip.
 

Meal allowances

A tax-exempt meal allowance may be possible in a special sector, such as construction, earthworks or forestry, if the conditions set by the Finnish Tax Administration are met. A meal allowance cannot be paid tax-exempt merely because the workday took place somewhere other than the employee’s regular workplace.

You can report meal allowances using UKKO’s travel expense report template or your own Excel file.
 

Please note

• Do not pay the reimbursements from the company’s bank account before you have created the payslip in UKKO Entrepreneur.
• If the reimbursements have already been paid without creating a payslip, they cannot be reported retroactively in UKKO Entrepreneur according to the current instructions. In this case, the report is submitted through the Palkka.fi service using the actual payment date. A late report may result in a late-payment fee for the company. This service-specific procedure should be verified before publication.
• If the reimbursement is paid to someone other than the entrepreneur, this article does not apply. The current article directs these cases to the Palkka.fi service. This instruction should be verified with a payroll specialist before publication.
• Tax exemption requires that the trip and the amount of the reimbursement meet the Finnish Tax Administration’s requirements. If the requirements are not met, the reimbursement may be treated as taxable salary.
   

Where can I find the travel expense report template?

You can find the travel expense report template in this article and in your customer account under:

Reports and documents → Documents

Attach the completed travel expense report to your salary request.
 

If you need help

If you are unable to create the report or the salary remains as "waiting for approval", contact our customer service (osakeyhtio@ukko.fi).