Board and lodging - allowance rates for subsistence allowance not subject to withholding tax

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Travel without overnight stays

In the case of travel without an overnight stay, rates according to the State travel agreement for covering of costs to diet and travel, are not subject to withholding tax. If your employer, client or host covers your diet, the rates will be reduced.

In addition, special regulation as to the filling of a claims form for travel expenses must be met in order for your employer to pay allowances without withholding tax.  

Travel with overnight stays

In the case of travel involving one or more overnight stays, it is the place where the person concerned actually stays overnight (type of accommodation) that determines what you can be paid in subsistence allowance not subject to withholding tax. In addition, the distinction between business stay and commuting will be of importance if the accommodation is private or a bedsit/Portacabin with cooking facilities.

In order for the allowance to be paid in its entirety without the deduction of withholding tax, the allowance must be within the rates shown below and fulfil the specific documentation requirements stipulated in the Tax Payment Regulation must be met.

Special rates concerning overnight stays at a guesthouse or in a bedsit/Portacabin/private accommodation with cooking facilities or a hotel

The Directorate of Taxes has established special rates for overnight stays at a guesthouse or in a bedsit/Portacabin/private accommodation with cooking facilities or a hotel. The rate for overnight stays in a bedsit/Portacabin or private accommodation is being abolished with effect from the 2018 income year for commuting employees. The tax-free coverage of expenses for board by an employer will not be limited by the 24-month rule, i.e. an employer can also provide tax-free coverage of additional expenses for board and lodging after the 24-month period.

A rate is also set for long-distance lorry drivers. See the table below.

The Directorate of Taxes’ allowance rates for subsistence allowance not subject to withholding tax - domestic	Rates
For employees staying in a guesthouse or bedsit/Portacabin without cooking facilities	NOK 159
For employees on a business trip staying in a bedsit/Portacabin with cooking facilities or private accommodation	NOK 88
For employees staying at a hotel	NOK 569
For employees staying at a hotel with breakfast included (who would have been entitled to a deduction for additional expenses for board), the hotel rate is reduced by 20 percent. If the employee’s expenses for one or more meals are also covered, the allowance which is not subject to withholding tax must be reduced by 20 percent for breakfast, 30 percent for lunch and 50 percent for evening meal (the amounts must be rounded up or down to the nearest whole krone). See the examples of how the rates should be interpreted at the bottom of the page.	NOK 455
For long-distance lorry drivers (who would have been entitled to a deduction for additional expenses for board)	NOK 300

 

The Directorate of Taxes’ allowance rates for subsistence allowance not subject to withholding tax - abroad	Rates
For employees staying in a bedsit/Portacabin with cooking facilities or private accommodation	NOK 88
For employees staying in a guesthouse or bedsit/Portacabin without cooking facilities (who would have been entitled to a deduction for additional expenses for board)	NOK 159
For employees staying in a hotel (who would have been entitled to a deduction for additional expenses for board), subsistence allowances in accordance with the government’s rates for subsistence expenses abroad (in accordance with a special agreement concerning the coverage of expenses for travel and board outside Norway, section 8) are considered to be not subject to withholding tax If the employee’s expenses for one or more meals are also covered, the allowance which is not subject to withholding tax must be reduced by 20 percent for breakfast, 30 percent for lunch and 50 percent for evening meal (the amounts must be rounded up or down to the nearest whole krone).	NOK 455
For long-distance lorry drivers (who would have been entitled to a deduction for additional expenses for board)	NOK 300

Attachments

Examples showing how the rates are to be interpreted:

Example 1

An employee is on a business trip and stays at a hotel in order to attend a meeting. The person has breakfast during the meeting which is included in the price. The correct rate will then be NOK 455. (Reduced by 20 percent for breakfast). However, if the employee has to pay for breakfast themselves at the meeting place, the correct rate will be NOK 569.

Example 2

An employee is on a business trip and stays at a hotel in order to attend a course. The person has their expenses for breakfast and lunch covered. The correct rate which must be applied in connection with this will be NOK 285 (NOK 569 - 20 percent for breakfast - 30 percent for lunch).