Company vehicles – business journeys - kilometre
Concerns the benefit of private use of a company car which must be valued individually according to the kilometre rate for private use.
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 whole income year. This applies except if an electronic logbook is acquired and used during the income year. In such cases, assessment based on a kilometre rate can be used as a basis from the first full month in which the logbook is used onwards.
The individual valuation of the company car according to the kilometre rate must be entered here. The ordinary standard method with a basic deduction must be reported Company car – business need – list price.
See also:
The information you must provide
Amount | NOK x |
Type of salary or benefit | Payment in kind, company car business need listprice |
Subject to withholding tax | Yes |
Basis for employer's national insurance contributions | Yes/No |
Tax and contribution rules | If relevant |
Additional information |
|
No. of kilometres | Number of kilometres |
Registration number | The car's registration number |
Country of earnings | Country code if the benefit was earned abroad |
Amount
Specify the taxable benefit.
The taxable benefit is calculated according to a fixed kilometre rate for private travel. An electronic logbook must be kept. The electronic logbook must document the total distance driven and the total distance driven on business travel, so that the difference amounts to the number of kilometres that the vehicle has been used privately.
Example with kilometre rate
Kari is given a company car with the reg. no. AB54321 by her employer. Kari has an electronic logbook which shows that she drove a total of 1,600 kilometres in February. Of this, 1,100 kilometres were on business. 500 kilometres were private travel. The rate per kilometre is 3.40 (2024).
Benefit of private use | |
500 * 3,40 |
1,700 |
A-melding for February: |
|
Beløp |
1,700 |
Type of income | Payment in kind, company car business journeys kilometre |
Liability for withholding tax | Yes |
Basis for employer's national insurance contributions | Yes |
No. of kilometres | 500 |
Registration number | AB54321 |
Type of salary or benefit
Specify “payment in kind” and “company car business journeys kilometre”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
You don't have to make withholding tax deductions if the amount to be deducted is less than the minimum threshold for withholding tax.
In the case of payments in kind, you must make the deduction from the cash benefits as far as possible. You must notify the tax office via Altinn if the total withholding tax deductions exceed the cash benefits.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
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
- Number of kilometres
Specify the number of kilometres of private travel, including home-work travel. - Registration number
State the car's registration number - Country of earnings (if the benefit was earned abroad)
Specify the country code for the country in which the income was earned.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When you must submit reports
Specify the benefit calculated according to the number of kilometres and the rate for the calendar month in which the car is actually used.
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 do we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses company car information 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.