Savings on household costs for commuters
Concerns savings on household costs for a commuting employee away from home.
Brief information concerning savings on household costs for commuters
State savings on household costs for an employee who has free board during their commuter stay away from home (not business travel). Applies when the employee gets free board or subsistence expenses covered directly by the employer (reimbursement) tax-free and not subject to withholding tax during their commuter stay.
Savings on household costs are a calculated supplement in the income which is intended to represent savings on costs in the home because the employee has their costs reimbursed by the employer.
You must use the Directorate of Taxes’ rates for savings on household costs when calculating the value.
See the rates for savings on household costs (rate for subsistence savings)
Free board on-board ships
In the case of free board on-board ships, you should not calculate the saving on household costs when the benefit is exempt from taxation.
Free board on offshore installation
Do not calculate savings on household costs for free board on continental shelf facilities when the benefit is tax-exempt.
Do not use this description for foreign employees who are part of PAYE scheme for foreign workers.
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 | Payment in kind, saving on household costs |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
Additional information: |
|
| Quantity | Number of days |
Amount
Specify the gross amount.
Type of salary or benefit
Specify “payment in kind” and “saving on household costs”
Subject to withholding tax
The benefit is subject to withholding tax.
Savings on household costs must only be included in the basis for calculating the deduction if salary or other remuneration for work that is subject to withholding tax is paid on an ongoing basis or for the contract to which the employment is linked. Benefits from which withholding tax can be deducted must actually be paid in order to deduct withholding tax from savings on household costs.
Tax-free companies, associations and institutions referred to in Section 2-32 first paragraph of the Tax Act are exempt from the obligation to deduct withholding tax from the value of savings on household costs when the total salary payment, etc. made to a person during the income year does not exceed NOK 10,000 (excluding the cost savings). The deduction obligation arises from the date on which salary and other benefits exceed NOK 10,000.
This does not apply if the amount to be deducted is below the minimum thresholds for withholding tax deductions.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
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:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
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.
Additional information
Specify the number of days.
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 you must submit reports
Specify the benefit in the calendar month in which you have given free board during commuting.
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 information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.
The Norwegian Tax Administration uses information concerning savings on household costs for commuters to pre-complete the tax return and for control purposes.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
These regulations are only available in Norwegian.
