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Employers can pay a distance-based allowance to their employees for work-related travel by private car. Some portions of this allowance may be taxable.

The rules are set by the government and may be reviewed yearly. follow Follow this link to read more:

https://www.skatteetaten.no/en/rates/car-allowance-distance-based-allowance/

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The car allowance calculation is always based on the rates provided by the government.

e.g. In the year 2021, the tax fee kilometer rate for cars (including electric cars) equals to NOK 3.50 per km.

All the rates are usually defined in the Organization Properties. The rates can be set on the following levels:

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