Tax benefits & incentives for EV´s
Car tax
Cars and vans registered or put into service in Finland are subject to a registration 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 registration 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 vehicle. 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 unlimited car benefit, an additional 135€ per month will be deducted from the unlimited car benefit value due to running costs of fully electric vehicles. The deduction does not apply to benefit of use vehicles.
Other low emission cars
The monthly value of car benefit is reduced by 85€ for each month that the car benefit has been used for a car with CO2 emissions between 1 and up to 100 grams per kilometre (hybrid and gas car). This applies to cars registered in Finland during or after 2021. This temporary tax incentive will expire at the end of 2025.
In unlimited car benefit, an additional 60€ per month will be deducted from the unlimited car benefit value due to running costs of fully electric vehicles. The deduction does not apply to benefit of use vehicles.
Tax exemption for electricity charging benefits
The tax exemption for any employer-provided business premises charging for an electric car or plug-in hybrid will expire at 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 benefit of use at the workplace. In addition to full electric vehicles, the charging benefit is also available for plug-in hybrids.
The government's publication of the Spring 2024 policy framework does not mention the continuation of the tax exemption for electricity charging benefits.
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