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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.

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 vessel;a specific vessel;

You need to set the rates on the level that corresponds to your procedures. Here are a few examples:

Expand
titleCar 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.

Image RemovedImage Added
Expand
titleCar 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.

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Entry Code Setup

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titleCar Allowance (regular) / KM-godtgjørelse (regular)

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

Here what needs to be done:

We will describe the setup for several entry codes that you might require in your system.

Expand
titleCar Allowance (regular) / KM-godtgjørelse (regular)
Info

Note: In our setup, we use global rates 21 and 22 for the calculation.
But each customer can use different ones.

  1. Under the General tab, fill in the entry Name and set it to Allowance.

  2. Under the Input tab setup , set up the following fields.

  3. 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
    languagenone
    //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 L23=GB19

//Amount
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

  4. 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.

  5. Set the following EDAG coding
    This still refers to the non-taxable amount being stored in L69 and the taxable amount in L70.

Expand
titleCar 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.

  1. 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 

//GB20GB22 = Global rate line 2022 for car allowance non taxable rate
//L23=GB20 - 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

  2. The EDAG coding should be like that:

Expand
titleCar 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.

  1. Under the General tab, fill in the entry Name and set it to Allowance.

    Image Added

  2. Under the Input tab, set up the following fields.

    Image Added

  3. Under the Сalculation tab, define the necessary accounts and accounting dimensions.
    Then create a separate script for the Car Allowance calculation.

    Image Added


    This is 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
    languagenone
    //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
//(VB5-VB6) - taxable part
//L67 - calculated amount 7
//L69 - calculated amount 9
//L70 - calculated amount 10

IF VB5 > VB6 THEN
  L70=(VB5-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

  4. Setup the fields to be available on the Payslip.

    Image Added

  5. Set the following EDAG coding.

    Image Added