Board and lodging - rates for deduction and tax-free allowances

For work journeys without overnight stays, the following rates apply.

If the employer, client or organiser/host covers one or more meals, you must reduce the allowance according to the value of the meal(s). The subsistence allowance not subject to withholding tax is reduced by 20 percent for breakfast, 30 percent for lunch and 50 percent for dinner (the amounts are rounded to the nearest whole NOK).

In order for the allowance to be paid tax free and without being subject to withholding tax, you must document your claim according to the specific requirements laid down in the Tax Payment Regulations .

In the case of travel involving overnight stays, it’s the place where you actually stay overnight (the type of accommodation) that determines your received subsistence allowance not subject to withholding tax. In addition, the distinction between work-related travel and commuter travel can be of significance if the accommodation is private or a bedsit with cooking facilities.

For journeys of 6 hours or more into a day without an overnight stay (commenced day), an allowance for subsistence is given based on the type of accommodation used on the previous overnight stay. The meal-related reduction in the subsistence allowance is made based on the rate for overnight stay for the relevant type of accommodation. Meal-related reductions and surplus calculations are made per day.

If the travel has not lasted long enough for the employee to be entitled to a subsistence allowance for the commenced day (less than 6 hours), no meal-related reduction can be made. Instead, the employer can cover meals in the commenced day directly or by refunding documented expenses. This is because the surplus and meal-related reductions should be calculated per day. The rule applies even if your overnight stay is in a hotel, guesthouse/portacabin or bedsit/private. However, this is not the case when the employee stays overnight at a hotel where breakfast is included. In such a case, a meal reduction for breakfast should always be made, even if the employee chooses to eat breakfast later (typically in the commenced day). The employer has already covered breakfast, and the employee cannot get this meal covered twice.

In order for the allowance to be paid tax free and without being subject to withholding tax in its entirety, the allowance must be within the rates below, and the specific documentation requirements laid down in the Tax Payment Regulations must be met.

Special rates apply for overnight stays at a guesthouse/portacabin or bedsit with cooking facilities / private accommodation, or at a hotel. The rates apply in Norway as well as abroad.

Overnight stays at a guesthouse or a portacabin are considered accommodation without cooking facilities regardless of whether you’re able to prepare food in the accommodation. For overnight stays in portacabins, this applies from 2023 onwards.

The rate for overnight stays at a bedsit with cooking facilities or private accommodation does not apply for commuting employees.

The employer’s tax-free coverage of board is not limited by the 24-months rule (a rule that limits commuters’ right to claim deductions for board and lodging to two years only). This means that the employer can provide tax-free coverage of additional costs for board and lodging for a period exceeding 24 months.

There is also a specific rate for board expenses for long-distance drivers working in Norway and abroad.

Example 1
An employee travelling for work is staying in a hotel to attend a meeting. The employee is served breakfast during the meeting without having to pay for it. The correct rate is then NOK 526. (Reduced by 20 percent for breakfast). However, if the employee must pay for breakfast himself, the correct rate is NOK 658.

Example 2
An employee travelling for work is staying in a hotel to attend a training course. The employee has her breakfast and lunch covered. In this case, the correct rate will be NOK 329 (NOK 658 - 20 percent for breakfast - 30 percent for lunch).

Allowance for board to cover extra expenses for food on home visits can be covered tax-free and without withholding tax according to the Directorate of Taxes' rate when the taxpayer has:

• free board at their place of work and
• the home visits between the home and place of work does not involve accomodation, but the home visit lasts 6 hours or more

Remuneration for lodging when staying overnight in your own portacabin/caravan during work stays away from home, can be covered free of deductions and free of tax according to the Directorate of Taxes' rate. This applies to portcabins and caravans which are not considered as fixed assets for taxpayers.