Other free use of car
Applies when an employee has a company car at their disposal and the list price does not reasonably reflect the benefit of private use. This is an exemption rule that should only be used where the discrepancy is significant.
Brief information concerning other free use of car
Report the benefit of private use of an employer's car in cases where the list price clearly does not reasonably reflect the benefit of private use.
This is an exception rule and should only be used when the discrepancy is significant.
Standard rule and exception rule
When an employer makes a car available for private use, this is a taxable benefit that is normally calculated under a standard rule based on the car’s list price.
In certain cases, the standard rule may result in a benefit that is clearly too high or too low. In such cases, the benefit may be assessed on a discretionary basis. This is an exemption rule that is only used in special cases, for example for certain large or specially adapted vehicles, vintage cars or cars that have been substantially modified.
The age of the car, limited private use, or periods when the car cannot be used due to holiday, illness or repairs are not in themselves grounds for applying the exemption rule.
Are you unsure whether you can apply the exception rule
Contact us via the contact form for guidance on whether you can apply the exemption rule or whether you should report the benefit under the standard rule. . See the more detailed description of the standard rule Free use of car – standard rule.
See also:
- Commercial vehicles – business need - kilometre
- Commercial vehicles – 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 applicable |
Additional information: |
|
| Other car | Yes |
| List price | NOK x |
| Registration number | The car's registration number |
| Car pool | If applicable |
Amount
Enter 1/12 of the advance rate set by the Directorate of Taxes for each calendar month.
Car rates - 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 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
If the income recipient meets the conditions, you must use the relevant tax and contribution rule:
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
Enter «other free use of car» for cars where the list price is not proportionate to the benefit linked to the private use. - List price
Enter the car’s list price when new (without any reductions). The car’s list price when new is the main importer’s list price at the time of first registration, including value added tax and the vehicle scrap deposit, but excluding freight and registration costs. The list price of any optional equipment must be added to the list price. - Registration number
Enter the car's registration number. - Car pool
Specify "car pool" instead of the registration number if the car is part of a car pool arrangement. This means that, because employees continually alternate between vehicles in the employer’s fleet, it is not possible to determine a specific period during which the employee used an individual car privately.
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
If the car has been used privately for more than 10 days or 1,000 kilometres during a year, you must report the benefit.
Report the benefit calculated using the advance rate for each calendar month during which the car was at the employee’s disposal.
You must report the benefit for each full or partial calendar month during which the car was at the employee’s disposal, calculated in twelfths.
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 about salary and other benefits to calculate unemployment benefit and to verify benefits such as sickness benefit, parental benefit, disability benefit and advance payment of child maintenance.
The Tax Administration uses information about other free use of car to pre-fill the tax return and for verification purposes.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
