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 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) - 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:
In 2021, the tax fee kilometer rate for cars (including electric cars) equals NOK 3.50 per km.
The 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.
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.
Entry Code Setup
Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.
We will describe the setup for several entry codes that you might require in your system.
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 set up the following fields.
Under the Сalculation tab, define the necessary accounts and accounting dimensions.
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 3 dots
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 as mentioned the non-taxable amount is stored in L69, and the taxable amount is stored in L70.
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 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.
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.
This entry is 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:
//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:
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 set up the following fields.
Under the Сalculation tab, define the necessary accounts and accounting dimensions.
Then create a separate script for the Car Allowance calculation.
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.//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
Setup the fields to be available on the Payslip.
Set the following EDAG coding.