Woman working from home. Photo: Emmi Korhonen / Lehtikuva
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The Finnish government has decided to abolish the flat-rate home office deduction used by many remote workers, following talks during this week’s mid-term budget framework meeting.
The flat-rate deduction has typically applied to employees who use their own homes for remote work. It allows for a simplified deduction because separating actual work-related costs from general living expenses is often difficult.
In 2024, the maximum deduction was 960 euros, available to employees who performed remote work for more than half of their working days. The deduction reduced taxable income by up to 960 euros, depending on salary and tax rate, thereby lowering the amount of tax owed.
From now on, this specific deduction will no longer be available. Workers will not be able to claim the simplified tax relief for working from home unless they can demonstrate actual expenses.
However, the government confirmed that deductions based on actual expenses will remain in place. This method is typically used by individuals who rent workspaces outside their homes, allowing them to deduct costs such as rent or maintenance charges.
For example, Annukka Vähäsöyrinki, Executive Director of the Finnish Artists’ Association, said the change will not directly impact most visual artists, as they usually rent separate studios.
“This does not really concern us,” Vähäsöyrinki said.
Still, she pointed out that the government also decided to cut four million euros from investment aid for the renovation of cultural spaces. According to her, this aid has helped to keep studio rents affordable even when major renovations were required.
“It has been an important way to support artists’ workspaces and studios, especially when facing costly repairs,” she added.
HT
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Source: www.helsinkitimes.fi
