Other free use of car
Concerns a situation when an employee has the use of a company car at his disposal and the list price is not proportionate to the benefit linked to the private use. This is an exception rule that should only be used when the discrepancy is significant.
Brief information concerning other free use of car
Specify the benefit of private use of an employer’s car in cases where the list price is clearly disproportionate to the benefit of the private use.
This is an exception rule which should only be used when the discrepancy is significant.
Standard rule and exception rule
When the employer owns or leases a car which is made available for private use by the employee, this constitutes a taxable benefit. The benefit must normally be assessed according to a standard rule based on the car’s list price.
In exceptional cases where the standard benefit based on the list price upon initial registration obviously isn't proportionate to the benefit linked to the private use, the benefit may be assessed on a discretionary basis. This exception rule may apply when the benefit calculated based on the standard rule would be too high or too low.
Not sure whether you can apply the exception rule
Use the contact form (RF-1306) to submit an enquiry about whether you can apply the exception rule or whether the benefit should be reported under the standard rule. See the explanation of the standard rule free use of car – standard rule.
See also:
- Company vehicles – business journeys - kilometre
- Company vehicle – business need – list price
- Free use of car outside the standard rule
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Payment in kind, car |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Other car | Yes |
| List price | NOK x |
| Registration number | The vehicle's registration number |
| Car pool | Yes |
Amount
Specify 1/12 of the Directorate of Taxes’ daily allowance rate per calendar month.
See car rates for company cars where the benefit is not in proportion to the list price
Type of salary or benefit
Specify “payment in kind” and “car”.
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 Jan Mayen Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Jan Mayen and the Norwegian dependencies” for salary and other benefits.
You must also specify “Jan Mayen and the Norwegian dependencies” for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Jan Mayen and the Norwegian dependencies regarding trade union fees and premium for pension scheme.
See also the detailed information concerning Jan Mayen and the Norwegian dependencies
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
- Other car
Specify «other free use of car» for cars where the list price is not proportionate to the benefit linked to the private use. - List price
Specify the list price of the car as new (without any form of reduction). The car’s list price as new is set to the main importer’s list price at the time of initial registration of the car, 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. - Registration number
State the car's registration number. - Car pool
Specify car pool instead of the registration number if the car is part of a car pool scheme. This means that, because of the constantly changing use of the employer’s car pool, no specific time period can be determined for the employee’s private use of a particular car.
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 allowance rate for each calendar month in which the vehicle is available for use.
Reporting is performed for each whole calendar month or part thereof (calculated in twelfths) during which the car has been available.
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 information concerning other free use of car 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.
