Car rates - company cars where the benefit is not in proportion to the list price
If you use a company car that is owned or leased by your employer, the benefit is normally considered salary income and you have to pay tax on the benefit. Generally, the benefit subject to withholding tax related to private use of company car is calculated using standard rules based on the car’s list price as new.
In special cases where the list price is clearly disproportionate to the benefit of the private use, the benefit may be calculated using discretionary assessment in the following way:
When the standard benefit based on the list price is too high:
At the preliminary stage of the income year, the benefit is calculated to be NOK 61,000 for the 2023 income year . This will apply if the company car scheme lasted the entire year. If the taxpayer has had a company car arrangement for part of the income year, the taxation of the benefit will be proportional to the number of whole and commenced months during which the car was at his/her disposal.
The same amount is considered a taxable benefit when the tax is assessed.
When the standard benefit based on the list price is too low: for example in connection with a very costly restauration or reconstruction of the car:
In relation to benefit taxation, you can use a guiding amount in the form of a corrected (upwards adjusted) list price that is multiplied with the relevant percentage rate(s) according to the standard rules. When calculating the benefit, the guiding amount can generally be the market value.
The rules relating to discretionary assessment of the benefit should only be used where the private benefit deviates largely from the calculation based on the standard rules.