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.
The rules are set by the government and may 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 organization units;
Employment company level - here we add the rates to be applied to the crew employment company;
Vessel level - here we set the rates to be applied to the crew with activities lined to this vessel;
You need to set the rates on the level that corresponds to your procedures. Here are a few examples:
In 2021, the tax fee kilometer rate for cars (including electric cars) equals to NOK 3.50 per km.
The max allowance rate is NOK 4.03 per kilometer.
The difference between the two rates of NOK 0.53 is taxable, meaning that you're paid per kilometer.
In 2021, the tax fee kilometer rate for travel home equals to NOK 1,56 per km.
The max allowance rate is NOK 3,50 per kilometer.
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.
Here what needs to be done:
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 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.//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 allowance 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 car allowance non taxable rate //GB21 = Global rate line 21 for max allowance 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.
This entry is setup 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:
//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:
