If you have employees in your business who use company cars, the employees concerned must generally be taxed for this. This benefit is therefore considered to constitute salary. (If you are self-employed and use a car for business purposes, you must follow the rules for work vehicles.)
In the case of company car schemes, which cover part of the income year, the benefit is assessed in relation to the number of months or part thereof during which the vehicle was available to the employee.
The benefit for using a company car must be calculated based on the car importer's list price at the time of initial registration. The value of extra equipment must also be calculated based on the importer's list price, regardless of whether the cost of it was paid by you or the employee. Benefit tax must also be calculated in accordance with the ordinary rules, even if the employee covers a proportion of the vehicle's upkeep.
Benefit tax - general rule
For 2023, employees are taxed for 30% of the vehicle's list price up to NOK 338,800 and 20% of the excess amount.
For class 2 vans and light goods vehicles (referred to below as vans), a basic deduction of 50% of the list price is given when such a vehicle is required for business use, subject to a maximum reduction of NOK 150,000.
- When the vehicle is more than three years old as of 1 January of the income year, the benefit is calculated based on 75% of the vehicle's list price as new. In the case of vans, the basic deduction will then be calculated based on 75% of the list price.
- If you are able to document that the business travel exceeds 40,000km during the income year, the benefit will be calculated based on 75% of the vehicle's list price as new. In the case of vehicles more than three years old, the benefit will be calculated based on 56.25% of the vehicle's list price as new. No basic deduction is given for vans. Travel to and from home is not considered business travel. An electronic vehicle logbook must be used to substantiate business travels exceeding 40,000 km.
Special rules for vans and light goods vehicles
In the case of vans and light goods vehicles for which there is a business need, instead of the ordinary rules described above, you can calculate the benefit tax on an individual basis (individual assessment).
In the case of individual assessment, the benefit is calculated based on the actual private use of the vehicle. In order to use this method, an electronic vehicle logbook must be kept. The vehicle logbook must be administered by you and document both the total distance travelled and the distance travelled on business. The difference must be taxed as private use of the vehicle at the rate of NOK 3.40 for 2023 regardless of mileage.
Example of the standard rules in 2023
The employee has at his disposal a one-year old company car with a list price of NOK 350,000 and travels less than 40,000 km on business during the year.
|Basis for taxation||NOK 350,000|
|30% of NOK 338,800||NOK 101,640|
|20% of NOK 11 200 (350 000-338 800)||NOK 2,240|
|Benefit of company car||NOK 103,880|
|Class 2 van||Amount|
|Basis for taxation||NOK 350,000 - 50%, subject to a maximum of NOK 150,000 = NOK 200,000|
|30% of NOK 200,000||NOK 60,000|
|20% of NOK 0||NOK 0|
|Benefit of company car||NOK 60,000|
Use of the employees private cars:
If the employee uses his own car instead of having access to a company car, the employer can receive a distance-based rate tax-free in accordance with the table shown below. If an allowance which exceeds the tax-free rate is paid, the excess amount will constitute a taxable payment.
|Own car irrespective of distance travelled and car type||NOK 3.50 per kilometre|
|Own electric car irrespective of distance travelled||NOK 3.50 per kilometre|
|Supplement per passenger||NOK 1.00 per kilometre|
|Supplement for trailer||NOK 1.00 per kilometre|
|Supplement for carrying equipment and materials||NOK 1.00 per kilometre|
The rate applies to car use nationwide.