The stencil method with a basic deduction
The private use of category 2 vans and trucks is valued based on the stencil method for ordinary company cars, but with a special basic deduction which takes into consideration that category 2 vans and trucks are less suited for private use than ordinary company cars. The reduction in value is done by reducing the list price by 50 percent, limited to a maximum reduction of NOK 150 000. If the value has already been reduced by 50 per cent for electric vehicles, the basic deduction will not be given in addition.
A rate per kilometer (individual valuation)
The private benefit can also be valued based on actual use (rate per kilometer). In order to determine the taxable benefit based on the rate per kilometre, the vehicle must have an electronic travel log which is administered by the employer. The electronic travel log shall document the total distance driven, in addition to the total distance of occupational driving. The difference between those two constitutes the number of kilometres the vehicle has been used privately. The option to determine the taxable benefit based on the rate per kilometre includes all private driving, not just to and from work.
For 2016, the rate for calculating the private benefit based on actual use is NOK 3.40 per km regardless of the distance travelled.
The rules regarding the benefits of private use of a company car which is not covered by the standard regulations which were valid to the end of 2015, will still apply to certain types of vehicles:
- Trucks with a total weight of 7,500 kg or more and busses with seating for more than 15 passengers
- Cars which, according to law, it is prohibited to use for other private driving than between the home and the permanent place of work
- Cars registered for nine passengers or more which are used in a scheme arranged by the employer to transport employees between the home and permanent place of work, and not used privately beyond the home-work travelling.
The employer chooses the option with an electronic travel log. The log shows that you have driven 5 000 kilometers which are not occupational driving. This includes private driving and driving between your home and your permanent place of work. Driving between your home and your work assignments are, however, occupational driving. The calculation will then be: 5 000 km x 3.40 kr = 17 000 kr.
17 000 kr will be added to your income and tax will be calculated.
The employer chooses the stencil method. Your job requires you to have a company car. The car has a list price of 350 000 kr. The list price is reduced by 50 percent, limited to a maximum reduction of 150 000 kr. The calculation:
350 000 kr - 150 000 kr= 200 000 kr.
200 000 kr x 30% = 60 000 kr
You drive 10 000 kilometers which is not occupational driving, and the car has a list price of 200 000 kr. If the employer chooses the option with an electronic travel log, the taxable income will be 34 000 kr. If the employer chooses the stencil method based on the list price, the taxable income is 30 000 kr: (200 000 kr x 50%) x 30%.
If you drive 16 000 km privately, and the car was registered on 11.11.2011 and has a list price of 400 000 kr, the taxable income will be 54 400 kr if the employer chooses to use an electronic travel log.
With the stencil method the calculation is:
400 000 kr x 75% = 300,000 kr
300 000 kr - 150,000 kr = 150,000 kr
150 000 kr x 30% = 45 000 kr