Company vehicle – business need – list price
Concerns the benefit of private use of a company car which must be valued according to a standard method based on list price with a basic deduction.
Brief information concerning company vehicles – professional use
Specify the benefit of private use of company vehicles for:
- vans class 2, see Regulation No. 268 concerning one-off registration tax on motor vehicles, Section 2-3
- light goods vehicles under 7,500 kg; see the Regulation, Section 2-6.
It is a requirement that the income recipient needs to use the company car for business journeys.
The taxable benefit is assessed in accordance with:
- ordinary standard method based on list price with a special based deduction, or
- kilometre rate for private use, with a requirement for documentation via an electronic vehicle logbook
See the rates you should use in the calculation
Employer and employee are bound by the chosen method of assessment for the full income year. This applies except if an electronic vehicle logbook is acquired and used during the income year. In such cases, assessment based on a kilometre rate may be used as a basis from the first full month in which the logbook is used inclusive.
The ordinary standard method with a basic deduction must be reported here.
Individual valuation of the company car according to the kilometre rate must be entered as Company car – business need – kilometre.
See also:
The information you must state
| Amount | NOK x |
| Type of salary or benefit | Payment in kind, company car business journeys List price |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
Additional information |
|
| List price | NOK x |
| Registration number | The car's registration number |
| Country of earnings | Country code if the benefit was earned abroad |
Amount
Specify the taxable benefit.
The benefit is assessed according to the standard rule for company cars, but using a special basic deduction.
Basis for calculating the taxable benefit:
- The basis is set to the vehicle’s list price as new with a basic deduction of 50 percent, limited to NOK 150,000
- in the case of company cars more than three years old as of 1 January in the income year, 75 percent of the car’s list price as new must be used as a basis before calculating the basic deduction
- No reduction is given for business travel in excess of 40,000 km in addition to the basic deduction.
No reduction in the calculation basis may be made for the same vehicle for electric cars or in the form of a basic deduction for vans class 2 and light goods vehicles.
The benefit is set to 30 percent of the calculation basis up to an amount stipulated by the Directorate of Taxes, plus 20 per cent of the list price above this amount.
See the threshold amount for the individual income year which you should use in the calculation
Example with a company vehicle
Kari works for a car dealership. Her employer makes a company car with the registration AB54321 available to her. The list price of the vehicle is NOK 660,000. The threshold amount is NOK 351,700 (2024).
| The calculation basis for the benefit is 660,000 – 150,000 = 510,000 |
||
|
30 percent of 351,700 |
105,510 | |
| + | 20 percent of 158,300 | 31,660 |
| = | total | 137,170 |
| Total benefit per month 137,170/12 | 11,431 | |
|
The a-melding |
|
|
Amount |
11,431 |
| Type of salary and benefit | Payment in kind, company car business need list price |
| Subject to payroll withholding tax | Yes |
| Basis for employer’s National Insurance contributions | Yes |
| List price | 660,000 |
| Registration number | AB54321 |
Type of salary or benefit
Specify ‘payment in kind” and “company car business need list price”.
Subject to withholding tax
The benefit must always be reported as subject to withholding tax.
You do not have to deduct withholding tax if the amount to be deducted is below the minimum threshold for withholding tax.
For payments in kind, you must deduct withholding tax from cash benefits to the extent that they are sufficient. If the cash benefits are not sufficient to cover the total withholding tax deduction, you must notify the Tax Administration in writing.
Basis for employer's national insurance contributionsinsurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You do not have to calculate employer's national insurance contributions if the income recipient:
- is covered by the national insurance legislation of another country under a social security agreement or the EEA Agreement
- is a foreign employee who is not a member of the National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has confirmation from the relevant social security authority that their membership is maintained (an A1 certificate or another form). Nav Membership and Contributions (Nav Medlemskap og avgift) assesses all supporting documents and registers any exemption from membership of the National Insurance Scheme, including the period and whether the exemption applies to all or part of the National Insurance Scheme. Registered exemptions from membership of the Norwegian National Insurance Scheme are transferred electronically from Nav to the Tax Administration.
Only an exemption registered with the Tax Administration exempts the employer from calculating employer's national insurance contributions for the employee.
The Tax Administration may determine employer's national insurance contributions for the employer if the employee is not registered with an exemption and the reported salary or benefit is not included in the basis subject to employer’s national insurance contributions.
The employer or employee can contact Nav if they have questions about whether an exemption from membership of the National Insurance Scheme has been registered.
Tax and contribution rules
This tax and contribution rule concerns:
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
Additional information
- List price
Specify the list price of the vehicle as new. The car’s list price as new is set to the main importer’s list price at the time of initial registration of the vehicle, including value added tax and vehicle scrap deposit but excluding transport and registration expenses. The price of any optional extras must be added to the list price.
If the employee stays abroad and the car was not acquired in Norway, then the list price must be set to the original list price as new in the country in which the employee stays (documentation of the list price may be required). - Registration number
State the vehicle's registration number - Country of earnings (if the benefit was earned abroad)
State the country code for the country in which the income was earned. - Outside the standard rule
For 2016: Specify “Outside the standard rule = no”
For 2017: It is voluntary to specify “Outside the standard rule = no"
For 2018: You must not specify “Outside the standard rule = no”
Earnings period (optional)
You can specify an earnings period for all types of salary and other benefits in the a-melding. Both the start date and end date of the earnings period must be within the same reporting month.
See also the explanatory information concerning the earnings period
When you must submit reports
Specify the benefit in each calendar month in which the vehicle was available to the employee if the benefit is calculated using the standard method.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefit and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses information concerning company cars to pre-complete the tax return and for control purposes.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
