Payroll instructions for 2026

For leasing contracts signed after 24 April 2025, updated payroll procedures apply as of January 1st 2026. Review the rules based on the contract start date:

• Contracts signed on or before April 23, 2025:
  Remain tax-exempt (up to €100/month) for the remainder of their term (up to a maximum of 5 years). Existing payroll procedures remain unchanged for these agreements.
• Contracts signed on or after April 24, 2025:
  Employers can select the processing model that best fits their payroll setup:
  • Option A – Net salary deduction (Recommended): The leasing cost is deducted directly from the employee's net salary. The benefit is not treated as taxable income.
  • Option B – Taxable fringe benefit: The employer covers the lease costs. The benefit value is added to the employee's gross income as a taxable fringe benefit.

Reporting to incomes register (Tulorekisteri)

Report the bike benefit value under Income Type 364 and any compensation collected from the employee under Income Type 420. The taxable benefit portion equals the net difference between these two values.

Disclaimer: Vapaus does not provide official tax advice. Always confirm current regulations directly at vero.fi.