Car allowance not subject to withholding tax – home visits for commuters
Applies to car allowances not subject to withholding tax (car allowances that do not exceed the Directorate of Taxes’ allowance rates) paid to cover travel expenses for home visits in Norway or abroad for commuters.
Brief information concerning car allowances not subject to withholding tax – home visits for commuters
Specify car allowance not subject to withholding tax in connection with a commuter's home visit in Norway or abroad.
You must apply the Directorate of Taxes’ rates in connection with the valuation. Payroll withholding tax will not be deducted from car allowance of commuters’ travel expenses when visiting their home, limited to NOK 100,880 a year. The rate for the distance-based deduction is independent of the travel distance.
See the rates for deductions for travel between home and work
If the travel coverage is subject to withholding tax for foreign employees, you must specify this as car allowance subject to withholding tax – home visits for foreign nationals staying i Norway.
If the travel coverage is subject to withholding tax for employees commuting to their home in Norway you must specify this as Other allowance for business travel subject to withholding tax.
Deduction entitlement
Commuters are generally entitled to deductions for expenses for home visits.
When the employer covers additional costs for which the employee can claim deductions due to their status as a commuter, the cost will generally be tax-free for the recipient (the net method).
You must consider where the employee is resident for tax purposes in order to be able to consider the employee a commuter.
Home visits abroad for foreign employees
- These are not subject to withholding tax in the case of a tax deduction card without the standard deduction without PAYE (Pay As You Earn) for foreign workers
When an employee has a tax deduction card without the standard deduction or without PAYE for foreign workers, expense allowances and payments in kind which are intended to cover home visits can be given without the deduction of withholding tax. - These are subject to withholding tax in the case of a tax deduction card with the standard deduction with PAYE (Pay As You Earn) for foreign workers
When an employee has a tax deduction card with the standard deduction or with PAYE for foreign workers, expense allowances and payments in kind which are intended to cover home visits will always be subject to withholding tax. This applies regardless of whether or not the employee is entitled to deductions for such costs.
Do not use this description if the employee is part of PAYE (Pay As You Earn) for foreign workers.
See more information on the PAYE scheme
Important information
A Norwegian commuter is a person who
- is resident for tax purposes in Norway,
- commutes between a home in Norway and a home in Norway or abroad, and
- is entitled to deductions for extra expenses for periods of work entailing stays away from home.
A foreign commuter is a person who
- is resident abroad for tax purposes,
- commutes between a home abroad and a home in Norway, and
- is a foreign employee commuting from an EEA country who has not had a tax deduction card with the standard deduction and is not part of PAYE scheme for foreign workers, or
- is a foreign employee with limited tax liability to Norway commuting from a country outside the EEA who has not had a tax deduction card with the standard deduction and is not part of PAYE scheme for foreign workers.
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Expense allowance, home visits, kilometre allowance - car |
| Subject to withholding tax | No |
| Basis for employer's national insurance contributions | No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Quantity | Number of kilometres |
| Description (foreign communter) | Foreign commuter with a tax deduction card without the standard deduction |
| Quantity (foreign communter) | Number of journeys |
Amount
Specify the gross amount.
Type of salary or benefit
Specify «expense allowance» and «home visits, kilometre allowance – car».
Subject to withholding tax
The benefit is not subject to withholding tax.
Basis for employer's national insurance contributions
You do not calculate employer’s national insurance contributions on the benefit.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rules:
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.
The tax and contribution rules are not applicable to foreign commuter with a tax deduction card without the standard deduction.
Additional information
- Quantity
Specify the number of kilometres. - Description
Specify «foreign commuter with a tax deduction card without the standard deduction» when the employee has a tax deduction card without the standard deduction for foreign employees. You should also use this description when the employee is not in the PAYE scheme for foreign workers.
- Quantity (foreign commuter only)
Specify the number of journeys by foreign commuter with a tax deduction card without the standard deduction.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
When to report
Report the benefit in the calendar month in which you paid the amount.
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 the information for control purposes.
The Norwegian Tax Administration uses information concerning home visits for commuters to ensure that employees do not claim deductions for expenses covered by their employer. Any excess is transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
