Rates applicable to taxpayers resident abroad who are assessed by the
Central Office - Foreign Tax Affairs
Pursuant to sections 5-10 and 5-12 of the Taxation Act, payments in kind to an employee are normally regarded as taxable income for the recipient. The most common payments in kind are free housing, free board and lodging, a free car and free travel home. The same applies to expense allowances paid to employees in order to cover such expenses.
If the employer covers housing expenses, the benefit of this shall as far as possible be stipulated on the basis of the rental value of corresponding housing in the place in question (market value). When valuing the benefit, account must be taken of the value of any free electricity, heating etc. provided.
If the employer makes free housing available and the benefit of this is taxable for the recipient, the employer must immediately request a valuation of the housing by the tax authorities. The prescribed form for this purpose is RF 1158. It must be completed and sent to the tax office. The tax office will carry out a valuation of the benefit of living wholly or partly free of charge, including any free electricity, heating or similar provided, based on information provided in the form and any other information that is available. A copy of the valuation form on which the decision is stated shall be sent to the employer, the tax collector in the municipality to which the employer belongs and to the recipient of the benefit.
The tax office will normally use the same value in the tax assessment as used in the advance valuation phase.
The benefit of free housing is not liable to tax if the taxpayer has commuter status or for taxpayers staying somewhere for work purposes, see Tax Topics 12 and 13. In such cases, it is sufficient that the employer reports the actual cost price on the employee’s Certificate of Pay and Tax Deducted (End of year certificate). The employer does not have to submit form RF 1158. If the taxpayer chooses the standard deduction in connection with his or her tax assessment, the benefit of free housing will be added his or her income as taxable income.
Free room/barracks/portakabin NOK 31
Free board and lodging (per day)
The benefit of free board and lodging NOK 110
The benefit of free board NOK 79
Employees working on the Norwegian continental shelf
Free board on the Norwegian continental shelf is tax-free for employees with a total personal income of less than NOK 600 000.
Seafarers are entitled to tax-free board on board ships with the exception of free board when the ship is on the Norwegian continental shelf and the employee’s total personal income exceeds NOK 600 000.
Seafarers’ collectively agreed wage supplement to cover board is tax-free up to NOK 16 500 per year.
Benefit of a free car
The benefit of a free car is based on the price of the car as new.
• 30 % of the first NOK 270 600 and 20 % of any amount in excess of that
• The benefit is stipulated at 75% of the price of the car as new in the following cases:
If the car is older than 3 years on 1st January of the income year
If the use of the car for job-related driving exceeds 40 000 kilometres during the income year
• In the case of el-cars, the benefit is stipulated at 50 % of the price of the car as new.
If the car has only been at the taxpayer’s disposal for part of the year, the benefit is stipulated proportionally.
NOK 1,50 for the first 50 000 kilometres per year
NOK 0,70 per kilometre in excess of 50 000 per year
The value of free travel home is stipulated as the actual cost.
Subsistence allowance (not subject to tax withholdings)
• Hotel: NOK 576 per day when breakfast is included in the price of the room, NOK 640 when the breakfast is not included in the price
• Guesthouse: NOK 293 per day
• Bedsit/portakabin/caravan: NOK 190 per day
Benefit of free board of NOK 79 and petty expenses of NOK 60 are included in the rates mentioned above
P. O. Box 8031. NO-4068 Stavanger, Norway
Lagårdsveien 46, NO-4010 Stavanger
Telephone + 47 51 96 96 00
Fax + 47 51 96 96 96