Government plan to remove tax exemption of bicycle benefit
The Finnish government is planning to remove the tax exemption for the bicycle benefit starting from January 1, 2026. This announcement came as a complete surprise to us, and we understand that it has raised concerns among employers, employees, and bicycle retailers alike.
Updated May 14, 2025 at 15.00
What do we currently know?
- The bicycle benefit is still a tax-free benefit as defined by law, and this government plan has no immediate impact on the tax advantage of existing lease agreements.
- The removal of the tax benefit requires a legislative change, which is planned to be discussed in Parliament in the autumn. According to the plan, the tax exemption for the bicycle benefit will end as of January 1, 2026.
- Due to the proposed legislation, no action is required from company bike users; you can continue cycling as usual. We will provide more information as it becomes available.
- Even if the tax exemption for the bicycle benefit is removed, the benefit itself will remain. It will still be possible to lease new bicycles in the future, and existing lease agreements will remain valid.
What we don’t currently know?
We don’t know at least these two things:
- Will the government eventually submit a legislative proposal to Parliament?
- Will the tax exemption be completely removed or only partially in the final proposal?
What happens next?
We will continue processing orders as normal. We will also inform each customer placing an order separately about the potential tax change.
We will further investigate the situation and actively work to ensure that the company bike benefit remains as attractive a fringe benefit as possible.
