Brief information about housing 

Specify the benefit when an employer provides free or subsidised use of housing to an employee in Norway or abroad.

Concerns the benefit of living:

• in more than one room  

Does not concern the benefit of living:

• in one room alone
• in a room together with others

You must specify this as free lodging.

See also the Tax ABC concerning free housing (in Norwegian only)

See also Tax-ABC concerning free housing abroad (in Norwegian only)

Note!
You must specify taxable compensation supplement as “cash benefit” and compensation supplement - housing».

 

Determination of rental value

The rental value of housing must be determined by the tax authority when:

• the employer makes the housing available, and
• the benefit is taxable for the recipient.  

This applies both when the employer owns the housing and when the employer rents it, even if the employee pays rent. The valuation must be carried out as soon as possible and by no later than the date on which the housing is first used.  

The rental value must be used as a basis in the first full month after the value has been determined.  

The employer must declare the form RF-1158 to get a valuation of the housing.

If you submit a valuation request after the relevant deadline, the rental value which is assessed will take effect from the first full month after the housing is first used.

 

When the housing is taken over by another employee

If another employee is to take over housing which has already been valued, the housing does not to be re-valued.  

This applies: 

• if the use remains unchanged, and
• there are no other reasons to re-value the housing.

 

Valuation of housing abroad

Housing abroad is taxable and must be valued if:

• the employee has free or subsidised use of housing, and
• the person concerned is not considered to be a commuter.

 

Valuation of free housing abroad which is owned by the employer

The housing must be valued by the tax authorities in the same way as housing made available in Norway.

 

Valuation of free housing abroad which is rented by the employer

The housing must be valued by the employer

• according to a standard method, or
• through individual valuation.
  
  

 

The information you must provide

Amount	NOK x
Type of salary or benefit	Payment in kind, housing
Subject to withholding tax	Yes
Basis for employer's national insurance contributions	Yes/No
Tax and contribution rules	If relevant
Additional information	-

 

Amount

Specify the rental value (taxable benefit)

If the employee has paid something for the benefit and this payment can be documented, the taxable benefit must be reduced accordingly. The payment must be registered as income by the employer.

 

Type of salary or benefit

Specify “Payment in kind” and “Housing”.

 

Subject to withholding tax

The benefit must always be specified as subject to withholding tax.

Include the rental value in the basis for calculating withholding tax from and including the first full month after you receive the valuation from the tax authorities and the housing is first used.

If the employee has paid something for the benefit, you must deduct the amount that has been paid before deducting withholding tax.

You don't have to make withholding tax deductions if the amount to be deducted is less than the minimum thresholds 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 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.

Include the rental value in the basis for employer’s national insurance contributions from the first full month after you receive notification of the rental value from the tax authorities and the housing is first used.

If you request an assessment of the rental value after the relevant deadline, the rental value must be included in the basis for employer’s national insurance contributions from the first full month after the housing is first used.

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

 

Tax and contribution rules

If the income recipient fulfils the conditions, you must use the following tax and contribution rules:

 

If you submit an a-melding for a tax-free organisation, you can use the following tax and contribution rule:

 

 

 

When you must submit reports 

Specify the rental value (taxable benefit) from the first full month after you receive notification of the rental value from the tax authorities and the housing is first used.

If you a request an assessment of the rental value after the relevant deadline, specify the rental value (taxable benefit) in the first full month after the housing is first used.

 

Correcting errors

 

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 housing information to pre-complete the tax return and for control purposes.

Statistics Norway (SSB) uses the information for statistical purposes.