EV tax benefits & incentives
Car tax
Cars and vans registered or put into service in Finland are subject to a car tax payable to the government, which is determined on the basis of the carbon dioxide emissions corresponding to the fuel consumption of the car.
The car tax rate for new fully electric cars and vans is zero. The zero rate applies to all-electric cars put into service on or after 1 October 2021.
Fully electric vehicles
The monthly value of the car benefit is reduced by €170 for each month that the car benefit has been a full electric car. This applies to cars first registered in Finland in 2020 or later. The subsidy was due to expire after 2025, but is now being extended until the end of 2029, according to the government's guidelines for the framework decision.
In the unlimited car benefit, an additional €135 per month will be deducted from the running costs added to the basic value. The deduction does not apply to the car allowance provided as a usage benefit.
Other low emission cars
The monthly value of the car allowance is reduced by €85 for each month that the car allowance has been used for a car with CO2 emissions of at least 1 and up to 100 grams per kilometre (hybrid and gas car). This applies to cars first registered in Finland in or after 2021. This temporary tax incentive will expire at the end of 2025.
In the unlimited car benefit, an additional €60 per month will be deducted from the running costs added to the basic value. The deduction does not apply to the car benefit granted as a limited allowance.
Tax exemption for electricity charging benefits
Electricity charging benefit until the end of 2025. Currently, no taxable income is generated for the employee when the employer pays for the charging of the employee's own car or limited car benefit at the workplace or at a public charging point. In addition to full electric cars, the charging benefit is also available for charging so-called "rechargeable hybrids".
The government's publication of the Spring 2024 policy framework does not mention the continuation of the charging subsidy.
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