Central Office – Foreign Tax Affairs
Tax Topic no 12 – Year of income 2016
Unofficial translation
COMMUTERS WHO TRAVEL BETWEEN NORWAY AND HOME ABROAD
Applicable rules for commuters who travel between home abroad and Norway. The rules are applicable for taxpayers with
global tax liability pursuant to the Tax Act § 2-1) or limited tax liability pursuant to the Tax Act § 2-3 (1) letter d or § 2-3 (2).
Right to claim personal- and family-related deductions for taxpayers with limited tax liability to Norway
A person resident in another EEA-state may be treated as a resident in Norway for tax purposes provided that 90 % of all
income from work, pension or other activity is taxable to Norway. Income from both spouses is included in case of marriage.
The taxpayer may choose between deduction for actual costs or a 10 % standard deduction on certain conditions. See Tax
Topic no. 4.
1. Deduction for commuter costs
The rules for commuter costs are changed from the year of income 2014, see the Tax Act § 6-13. Deduction is applicable
for taxpayers worldwide subject to documented commuter status. Deduction may only be releavnt in relation to taxable
income to Norway.
Conditions for commuter status:
Spouses or live-in partners with family resident abroad are required to document family relations and address of joint residence
abroad.
Single persons aged 21 or below may claim expenses incurred when working away from home provided documentetd
connection to residence abroad. Single persons aged 22 or above may not qualify if they have a self-contained house or flat in
Norway.
A self-contained house or flat is defined to be at least 30 square metres, and the residence has to be at the employee’s disposal
for at least one year. If more than one person share a housing unit, further 20 square metres must be added per person. Any
housing-unit with 7 persons or more, is not considered to be a self-contained house/flat. Documentation of the property’s
square metres is required.
Married person with family resident abroad and single persons aged 21 or below are required to visit their home abroad
regularly. The same applies for live-in partners with children. Single persons aged 22 or above are required to visit their home
abroad every third week.
2. Deduction for private travel, employment travel and business travel
The rules regarding travel between home and the work place (the Tax Act § 6-44), and commuter travel (the Tax Act § 613), have been changed from the year of income 2014.
The distinction between commuting travel and business travel will be significant for the taxation aspect regarding the
employer’s payment of travel expenses. Business travel can be covered completely tax-free by the employer, provided that the
payment does not exceed the real costs. This applies whether the payment is made directly (reimbursement against original
vouchers) or through an expense allowance provided by the employer. This is independent of the employee being granted the
10 % standard deduction.
The employer’s coverage of expenses related to commuting travel is, on the other hand, fully taxable if the taxpayer chooses to
claim the 10 % standard deduction.
521
Business travel
The travel is mainly made in the interest of the employer, which means that the travel is connected with the profession and is
for the purpose of carrying it on.
For those who meet the conditions that apply to commuter status, the first and last travel between the home abroad and Norway
are regarded as business travels. Which travels that are regarded as «the first» and «the last», must be considered in each case.
Postal address
P.O Box 8031
N-4068 Stavanger
Norway
Office address
See www.taxnorway.no
or call +47 51 96 96 00
E-mail: [email protected]
Telephone
+47 51 96 96 00
Fax +47 51 96 96 96
Commuter travel
A travel between home abroad and home in Norway. The travel is mainly made in the interest of the employee.
The employer must decide whether the travel is a commuting travel or a business travel and withhold taxes accordingly.
Choice of gross-deal or net-deal method
Gross-deal method
All expenses paid by the employer covering board, lodging and travelling to a home abroad, are liable to taxation. If the
employee has had free board and lodging at his/her disposal while working in Norway, the taxable benefit is NOK 87 per 24
hours (board) and NOK 33 per 24 hours (lodging).
The taxpayer may choose between deduction for actual costs or a 10 % standard deduction on certain conditions. The
deductible amount will be reduced with NOK 22 000 as regards to travelling expenses.
Net-deal method
Expenses paid by the employer covering board, lodging and travelling are not liable to taxation with the exception of any
surplus from allowances received. If the employee has had free board at his/her disposal while working in Norway, the taxable
benefit of saved food expenses at home is NOK 87 per 24 hours.
The employee can claim a deduction for expenses covered by himself/herself. In addition he/she can claim personal and family
related expenses, as explained above. With regard to travelling expenses, the amount deductible will be reduced
with NOK 22 000. The 10 % standard deduction is not applicable under the net-deal method.
January 2016
Postal address
P.O Box 8031
N-4068 Stavanger
Norway
Office address
See www.taxnorway.no
or call +47 51 96 96 00
E-mail: [email protected]
Telephone
+47 51 96 96 00
Fax +47 51 96 96 96