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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 usually based on the rates provided by the government. e.g. .
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) - to set rates that are applicable for all organization units;
Employment company level - to set rates that are applicable for individual employment companies;
Vessel level - to set rates that are applicable for crew with activities linked to a specific vessel;
You need to set the rates on the level that corresponds to your procedures. Here are a few examples:
| Expand |
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| title | Car Allowance (regular) / KM-godtgjørelse (regular) |
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In 2021, the tax fee kilometer rate for cars (including electric cars) equals |
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The company has decided to pay a rate of NOK 4.03 per kilometer.
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The employee needs to pay taxes of the difference between the two rates of NOK 0.53 |
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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
expand.  Image Added |
| Expand |
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| title | Car Allowance (Commuter) / KM-godtgjørelse (Pendler) |
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In 2021, the tax fee kilometer rate for travel home equals NOK 1,56 per km.
The 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.  Image Added |
Entry Code Setup
Once the rates are in place, we need to create a payment transaction under the Payroll > Entry Codes.
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We will describe the setup for several entry codes that you might require in your system.
| Expand |
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| title | Car Allowance (regular) / KM-godtgjørelse (regular) |
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| Info |
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Note: In our setup, we use global rates 21 and 22 for the calculation.
But 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 .
In our example, the non-taxable amount is stored in L69, and the taxable amount is stored in L70.
Create a separate script for the Car Allowance calculation . by clicking on the three dots 
This is the an example of the script that you can create. Click here to learn more about the scripts.
In our case, we use global rates 21 and 22 for the calculation, and as mentioned, the non-taxable amount is stored in L69, and the taxable amount is stored in L70.
But you may use different ones.
| Code Block |
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| //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 L23=GB19
//Amountfor 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)
//GB20GB22 = Global rate line 2022 for car allowance non -taxable rate
//GB19GB21 = Global rate line 1921 for max allowance rate
//(GB19GB21-GB20GB22) - taxable part
//L67 IF GB19- calculated amount 7
//L69 - calculated amount 9
//L70 - calculated amount 10
IF GB21 > GB20GB22 THEN
L70=(GB19GB21-GB20GB22) * 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.
In this example, we are showing the kilometers (L22), the rate (L23), and the total amount paid out.  Set the following EDAG coding
This still refers to the non-taxable amount being stored in L69 and the taxable amount in L70. 
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| Expand |
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| title | Car Allowance (non taxable) |
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This entry is set up almost in the same way as the Car Allowance (regular) |
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Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.
Here what needs to be done:
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entry. The only difference is in the script and EDAG coding. The script would be simple:
| Code Block |
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//Setting Employer
//Here you need to add a line for calculating the employer organization
//e.g. @@ADD:007.
//You can check your 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:
 Image Added
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| Expand |
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| title | Car Allowance (Commuter) / KM-godtgjørelse (Pendler) |
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| Info |
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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.
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 Image AddedUnder the Input tab
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, set up the following fields.
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 Image AddedUnder the
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Сalculation tab, define the necessary accounts and accounting dimensions.
Then create a separate script for the Car Allowance calculation.
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 Image Added
This is
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an example of the script that you can create. Click here to learn more about the scripts.
In our case, we use global rates 21 and 22 for the calculation, and the non-taxable amount is stored in L69, and the taxable amount is stored in L70. . But you may use different ones. | Code Block |
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| //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 |
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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)
// |
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VB6) - taxable part
//L67 - calculated amount 7
//L69 - calculated amount 9
//L70 - calculated amount 10
IF |
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VB6) * 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.
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 Image Added Set the following EDAG coding. Image Modified
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This entry is setup almost in the same way as the regular entry.
The only difference is in the script and EDAG coding.
The script would be simple:
| Code Block |
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//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
//GB20 = Global rate line 20 for car allowance non taxable rate
L23=GB20
L61=L22*L23 |
The EDAG coding should be like that:
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