About

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.

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https://www.skatteetaten.no/en/person/taxes/get-the-taxes-right/employment-benefits-and-pensions/hobby-odd-jobs-and-extra-income/sharing-economy/car-sharing-and-car-pooling/

Setup and configuration

Rates

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:

• Top level (blue building) - rates to be applied to all the organization units;

• Employment company level - rates to be applied to the crew employment company;

• Vessel level;

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Entry Code Setup

Car Allowance (regular)

Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.

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