Payroll processing changed as of January 1, 2026, for new contracts. We have made the processing as straightforward as possible.
1. Old Contracts (Signed ≤ April 23, 2025)
These remain tax-exempt (up to €100/month) until the end of the contract term (max. 5 years). The payroll procedure remains unchanged.
2. New Contracts (Signed ≥ April 24, 2025)
You can choose the method that suits your organization:
Option A (Net Salary Deduction): The most common method. The employer deducts the leasing portion from net salary. The benefit is not a taxable fringe benefit.
Option B (Fringe Benefit): The employer covers the costs. The benefit is added to the employee's taxable income as a taxable fringe benefit.
Reporting to the Incomes Register: The bike benefit is reported with income type 364 and the compensation collected from the employee with income type 420. The taxable portion is formed by the difference between these two.
NOTE: Vapaus does not provide official tax advice. Please always check the latest information at vero.fi.