Mileage and per diems in taxation

Many new sole traders (toiminimi) wonder: "Where are my mileage allowances?"

Here's the catch: as an entrepreneur, you're not your own employee. You can't "invoice" yourself for tax-free mileage or per diems the same way an employee can. Instead, you get a tax benefit for these when your accounts are finalised. So the money doesn't land in your account right away — instead, it stays in your pocket in the form of lower taxes.

When you report your expenses correctly, your taxable income decreases and you pay less tax. That's a saving you'll feel in your wallet later.

1. Mileage allowance (0,55 €/km in 2026)

If you use your own car for work trips, but the car isn't registered to the company (i.e. private driving accounts for more than 50% of all driving), you make what's known as an additional deduction in your taxation.

• How does it work? Keep a mileage logbook. At the end of the year, report the work kilometres driven to us, and we'll add the deduction to your tax return.
• Tip: You can use, for example, the Driversnote app or the free mileage logbook template on our website to keep your logbook. The main thing is that the kilometres are recorded!

2. Per diems – deduct your living costs

Work trips that take you further away from home or your workplace also entitle you to a tax deduction (the so-called increase in living costs).

• Partial per diem (trip over 6 h): 25 € / day
• Full per diem (trip over 10 h): 54 € / day

Important: Record the trips that entitle you to a per diem in your mileage logbook, including the times. Without records, we can't apply for deductions on your behalf — after all, we don't know where you've been adventuring!

When can I deduct per diems?

For the tax authorities to approve the deduction, it must be a genuine work trip, not just a quick hop to the neighbouring municipality. The rules are strict, but logical:

1. Distance: The "special place of work" (i.e. the gig location) must be more than 15 kilometres from where you set off (home or your workplace).
2. Separation: The destination must also be more than 5 kilometres from your actual workplace or home.

Crossing a municipal border is no longer a requirement — it's enough that the kilometre thresholds are met. If you visit several places on the same trip, the whole trip is counted as one, as long as the furthest destination meets that 15-kilometre rule.

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