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 June 30, 2025 at 11.00
What do we currently know?
- The bicycle benefit is a tax-free benefit as defined by law at least until the end of 2025. The removal of the tax benefit requires a legislative change, which is under public consultation until mid-August and planned to be discussed in Parliament in September.
- According to the plan, the tax exemption for the bicycle benefit will end as of January 1, 2026 for lease agreements made starting the 24th of April, 2025. For lease agreements made on 23rd of April, 2025 and earlier, this plan has no impact unless changes are made to the contract on 24th of April or later.
- 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?
- What aspects will impact the taxation status after 1st of January, 2026 for lease agreements made prior to 24th of April, 2025.
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.
