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Description
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 Norwegian government and may can be reviewed yearly. Follow this link to read more:
https://www.skatteetaten.no/en/rates/car-allowance-distance-based-allowance/
Setup and configuration
Rates
The car allowance calculation is always based on the rates provided by the government.
There are different rates based on the type of car allowance used: regular car allowance, car allowance commuter (from/ to work), etc.
All the rates are usually defined in the Organization Properties. The rates can be set on the following levels:
Top-level (has a blue building icon) - here we add the rates to be applied to all the to set rates that are applicable for all organization units;
Employment company level - here we add the rates to be applied to the crew employment companyto set rates that are applicable for individual employment companies;
Vessel level - here we to set the rates to be applied to the rates that are applicable for crew with activities lined linked to this a specific vessel;
You need to set the rates on the level that corresponds to your procedures. Here are a few examples:
| Expand |
|---|
| title | Car Allowance (regular) / KM-godtgjørelse (regular) |
|---|
|
In 2021, the tax fee kilometer rate for cars (including electric cars) equals to NOK 3.50 per km.
The max allowance rate is company has decided to pay a rate of NOK 4.03 per kilometer.
The employee needs to pay taxes of the difference between the two rates of NOK 0.53 is taxable, meaning that you're paid per kilometer.  |
| Expand |
|---|
| title | Car Allowance (Commuter) / KM-godtgjørelse (Pendler) |
|---|
|
In 2021, the tax fee kilometer rate for travel home equals to NOK 1,56 per km.
The max allowance rate is company has decided to pay a rate of NOK 3,50 per kilometer.
The employee needs to pay taxes of the difference between the two rates of NOK 1,94 is taxable, meaning that you're paid per kilometer.  |
Entry Code Setup
Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.
We will check describe the setup for several possible entry codes that you might require in your system.
| Expand |
|---|
| title | Car Allowance (regular) / KM-godtgjørelse (regular) |
|---|
|
| Info |
|---|
Note: In our setup we use global rates 21 and 22 for the calculation.
But you may each customer can use different ones. |
Under the General tab fill in the entry Name and set it to Allowance.
 Under the Input tab setup set up the following fields.  Under the calculation Сalculation tab, define the necessary accounts and accounting dimensions.
Then create Create a separate script for the Car Allowance calculation. 
This is the example of the script that you can create. Click here to learn more about the scripts.
In our case we use global rate 21 and 22 for the calculation. But you may use different ones.
| Code Block |
|---|
| //Setting Employer
//Here you need to add a line for calculating the employer organization
//e.g. @@ADD:007.
//You can check your other other entries for
//L23 - Input field 3 used for Rate
//GB21 = Global rate line 21 for max rate
L23=GB21
//L61 - calculated amount 1
//L67 - calculated amount 7
//L22 - Input field 2 used for Kilometer
//L23 - Input field 3 used for Rate
//L21 - Input field 1 used for Amount
L61=L22*L23
L21=L61
L67=L21
//Calculation of taxable amount (Fordeling av skattepliktig beløp)
//GB22 = Global rate line 22 for non-taxable rate
//GB21 = Global rate line 21 for max rate
//(GB21-GB22) - taxable part
//L67 - calculated amount 7
//L69 - calculated amount 9
//L70 - calculated amount 10
IF GB21 > GB22 THEN
L70=(GB21-GB22) * L22
L69=L67-L70
ELSE
L70=0
L69=L67
ENDIF
//L62 - calculated amount 2
//W81 - accumulator for tax table
//P50c - Company rate for region
W81=W81+L70 //Taxable (Skattepliktig)
L62=L70*P50c //Employers fee |
Setup the fields to be available on the Payslip.
 Set the following EDAG coding.
|
| Expand |
|---|
| title | Car Allowance (non taxable) |
|---|
|
This entry is setup set up almost in the same way as the Car Allowance (regular) entry. The only difference is in the script and EDAG coding. The script would be simple:
| Code Block |
|---|
//Setting Employer
//Here you need to add a line for calculating the employer organization
//e.g. @@ADD:007.
//You can check your other other entries for
//GB22 = Global rate line 22 for car allowance non taxable rate
//L23 - Input field 3 used for Rate
L23=GB22
//L22 - Input field 2 used for Kilometer
//L23 - Input field 3 used for Rate
//L61 - calculated amount 1
L61=L22*L23 |
The EDAG coding should be like that:
|
| Expand |
|---|
| title | Car Allowance (Commuter) / KM-godtgjørelse (Pendler) |
|---|
|
| Info |
|---|
Note: In our case we use vessel rates 5 and 6 for the car allowance (Commuter).
But you may use different ones. |
Under the General tab fill in the entry Name and set it to Allowance.
 Under the Input tab setup the following fields.
 Under the calculation Сalculation tab, define the necessary accounts and accounting dimensions.
Then create a separate script for the Car Allowance calculation.
This is the example of the script that you can create. Click here to learn more about the scripts.
In our case we use global rate 21 and 22 for the calculation. But you may use different ones.
| Code Block |
|---|
| //Setting Employer
//Here you need to add a line for calculating the employer organization
//e.g. @@ADD:007.
//You can check your other other entries for
//L23 - Input field 3 used for Rate
//VB5 = Vessel rate line 5 for max allowance rate
L23=VB5
//L61 - calculated amount 1
//L67 - calculated amount 7
//L22 - Input field 2 used for Kilometer
//L23 - Input field 3 used for Rate
//L21 - Input field 1 used for Amount
L61=L22*L23
L21=L61
L67=L21
//Calculation of taxable amount (Fordeling av skattepliktig beløp)
//VB6 = Vessel rate line 6 for non-taxable rate
//VB5 = Vessel rate line 5 for max rate
//(GB5VB5-GB6VB6) - taxable part
//L67 - calculated amount 7
//L69 - calculated amount 9
//L70 - calculated amount 10
IF GB5 > GB6 THEN
L70=(GB5VB5-GB6VB6) * L22
L69=L67-L70
ELSE
L70=0
L69=L67
ENDIF
//L62 - calculated amount 2
//W81 - accumulator for tax table
//P50c - Company rate for region
W81=W81+L70 //Taxable (Skattepliktig)
L62=L70*P50c //Employers fee |
Setup the fields to be available on the Payslip.
 Set the following EDAG coding.
|