Company cars

If you have employees in your business who use company cars, the employees concerned must generally be taxed for this. This benefit is therefore considered to constitute salary. (If you are self-employed and use a car for business purposes, you must follow the rules for work vehicles.)


In the case of company car schemes, which cover part of the income year, the benefit is assessed in relation to the number of months or part thereof during which the vehicle was available to the employee.

Skatteloven om privat bruk av arbeidsgivers bil (in Norwegian only)

The benefit for using a company car must be calculated based on the car importer's list price at the time of initial registration. The value of extra equipment must also be calculated based on the importer's list price, regardless of whether the cost of it was paid by you or the employee. Benefit tax must also be calculated in accordance with the ordinary rules, even if the employee covers a proportion of the vehicle's upkeep.

Car prices - List price as new

Benefit tax - general rule

For 2021, employees are taxed for 30% of the vehicle's list price up to NOK 325,400 and 20% of the excess amount.

For class 2 vans and light goods vehicles (referred to below as vans), a basic deduction of 50% of the list price is given when such a vehicle is required for business use, subject to a maximum reduction of NOK 150,000.

  • When the vehicle is more than three years old as of 1 January of the income year, the benefit is calculated based on 75% of the vehicle's list price as new. In the case of vans, the basic deduction will then be calculated based on 75% of the list price.
  • If you are able to document that the business travel exceeds 40,000km during the income year, the benefit will be calculated based on 75% of the vehicle's list price as new. In the case of vehicles more than three years old, the benefit will be calculated based on 56.25% of the vehicle's list price as new. No basic deduction is given for vans. Travel to and from home is not considered business travel. An electronic vehicle logbook must be used to substantiate business travels exceeding 40,000 km.
  • If the employee has the use of an electric car, the benefit will be calculated based on 60% of the vehicle's list price as new. In the case of vehicles more than three years old, the benefit is calculated based on 45% of the vehicle's list price as new. No basic deduction is given for electric vans when the 60% rule is used..

Special rules for vans and light goods vehicles

In the case of vans and light goods vehicles for which there is a business need, instead of the ordinary rules described above, you can calculate the benefit tax on an individual basis (individual assessment).

In the case of individual assessment, the benefit is calculated based on the actual private use of the vehicle. In order to use this method, an electronic vehicle logbook must be kept. The vehicle logbook must be administered by you and document both the total distance travelled and the distance travelled on business. The difference must be taxed as private use of the vehicle at the rate of NOK 3.40 for 2021.

Example of the standard rules in 2021

The employee has at his disposal a one-year old company car with a list price of NOK 350,000 and travels less than 40,000km on business during the year.

Car Amount
Basis for taxation NOK 320,000
30% of NOK 325,400 NOK 97,620
20% of NOK 24 600 (350 000-325 400) NOK 4,920
Benefit of company car NOK 102,540
Class 2 van Amount
Basis for taxation NOK 350,000 - 50%, subject to a maximum of NOK 150,000 = NOK 200,000
30% of NOK 200,000 NOK 60,000
20% of NOK 0 NOK 0
Benefit of company car NOK 60,000

Use of the employees private cars:

If the employee uses his own car instead of having access to a company car, the employer can receive a distance-based rate tax-free in accordance with the table shown below. If an allowance which exceeds the tax-free rate is paid, the excess amount will constitute a taxable payment.

Tax-free rate Amount
Own car irrespective of distance travelled and car type NOK 3.50 per kilometre
Own electric car irrespective of distance travelled NOK 3.50 per kilometre
Supplement per passenger NOK 1.00 per kilometre
Supplement for trailer NOK 1.00 per kilometre
Supplement for carrying equipment and materials NOK 1.00 per kilometre

The rate applies to car use nationwide.

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