Rate for:

Car - rates for category 2 company vans and small trucks

The private use of a company car is a taxable benefit that is also subject to withholding tax. Generally, the benefit is calculated using the standard rules based on the car’s list price as new.

If you’ve used your employer’s commercial vehicle for private travels, special rules apply when calculating the value of the benefit. By commercial vehicle in this context, we mean category 2 vans and lorries with a total weight of up to 7,501 kilograms. 

In order to use the special rules, you must have a work-related need to use this type of car. If you do not need, for example, a category 2 van for work, the benefit from the private use of the van shall be calculated according to the standard rules.

There are two alternative methods for calculating the tax benefit of the private use:

The stencil method with a basic deduction

The private use of category 2 vans and trucks is valued based on the stencil method for ordinary company cars, but with a special basic deduction which takes into consideration that category 2 vans and trucks are less suited for private use than ordinary company cars. The reduction in value is done by reducing the list price by 50 percent, limited to a maximum reduction of NOK 150 000. If the value has already been reduced by 50 per cent for electric vehicles, the basic deduction will not be given in addition.

A rate per kilometer (individual valuation)

The private benefit can also be valued based on actual use (rate per kilometer). In order to determine the taxable benefit based on the rate per kilometre, the vehicle must have an electronic travel log which is administered by the employer. The electronic travel log shall document the total distance driven, in addition to the total distance of occupational driving. The difference between those two constitutes the number of kilometres the vehicle has been used privately. The option to determine the taxable benefit based on the rate per kilometre includes all private driving, not just to and from work.

For 2020, the rate for calculating the private benefit based on actual use is NOK 3.40 per kilometre regardless of the distance travelled.

The rules regarding the benefits of private use of a company car which is not covered by the standard regulations, only applies to certain types of vehicles:

  • Trucks with a total weight of 7,500 kilograms or more and busses with seating for more than 15 passengers
  • Cars which, according to law, it is prohibited to use for other private driving than between the home and the permanent place of work
  • Cars registered for nine passengers or more which are used in a scheme arranged by the employer to transport employees between the home and permanent place of work, and not used privately beyond the home-work travelling.

Calculation examples

Example 1:

The employer chooses the option with an electronic travel log. The log shows that you have driven 5 000 kilometers which are not occupational driving. This includes private driving and driving between your home and your permanent place of work. Driving between your home and your work assignments are, however, occupational driving. The calculation will then be: 5 000 km x NOK 3.40  = NOK 17 000 
NOK 17 000 will be added to your income and tax will be calculated.

Example 2:

The employer chooses the stencil method. Your job requires you to have a company car. The car has a list price of NOK 350 000. The list price is reduced by 50 percent, limited to a maximum reduction of NOK 150 000. The calculation:

NOK 350 000 - NOK 150 000 = NOK 200 000
Taxable income: NOK 200 000 x 30% = NOK 60 000

Example 3:

You drive 10 000 kilometers which is not occupational driving, and the car has a list price of NOK 200 000. If the employer chooses the option with an electronic travel log, the taxable income will be NOK 34 000. If the employer chooses the stencil method based on the list price, the taxable income is NOK 30 000: (NOK 200 000 x 50%) x 30%.

Example 4:

If you drive 16 000 kilometers privately, and the car was registered on 11.11.2012 and has a list price of NOK 400 000 , the taxable income will be NOK 54 400 if the employer chooses to use an electronic travel log.With the stencil method the calculation is:

List price:
NOK 400 000 x 75% = NOK 300,000
NOK 300 000 - 150,000 = NOK 150,000

Taxable income:
NOK 150 000  x 30% = NOK 45 000