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.

e.g. 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.

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;

Entry Code Setup

Car Allowance (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:

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

   

2. Under the Input tab setup the following fields.
   

   

3. 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.
   

   //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 
   
   //Rate
   L23=GB19
   
   //Amount
   L61=L22*L23
   L21=L61
   L67=L21
   
   //Calculation of taxable amount (Fordeling av skattepliktig beløp)
   //GB20 = Global rate line 20 for car allowance non taxable rate
   //GB19 = Global rate line 19 for max allowance rate
   //(GB19-GB20) - taxable part
   
   IF GB19 > GB20 THEN
     L70=(GB19-GB20) * L22
     L69=L67-L70
   ELSE
     L70=0
     L69=L67
   ENDIF
   
   W81=W81+L70       //Taxable (Skattepliktig) 
   L62=L70*P50c      //Employers fee

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

   

5. Set the following EDAG coding.
   

   

Car Allowance (non taxable)

This entry is setup almost in the same way as the regular entry.

The only difference is in the script and EDAG coding.

1. 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 
   
   //GB20 = Global rate line 20 for car allowance non taxable rate
   L23=GB20
   L61=L22*L23

2. The EDAG coding should be like that: