Information for foreign employees Deductions for commuters 2014 skatteetaten.no Deductions for commuters Information for foreign employees staying in Norway for work purposes who commute to a home in their home country. You are also normally required to have three or four home visits with overnight stays per year. Single (unmarried) commuters If you are not a family commuter, you are classified as a single commuter. Cohabitants Commuting are treated as single in this context. How- If, because of your work, you have to stay ever, if you also live with your own children, somewhere other than your home and you are classified as a family commuter. you visit this home regularly, we refer to you as a «commuter». In such case, you If you are single, other requirements apply may be entitled to a deduction for the for you to be regarded as a commuter for extra expenses this entails for you, i.e. tax purposes. Single people are deemed extra subsistence, accommodation and to be resident where they have «independent travel expenses in connection with visiting housing». If you have independent housing your home abroad. These are called in Norway, you will be regarded as resident «commuting expenses». in Norway and will not be entitled to a deduction for visits to your home country. Employees who commute from abroad Your home must be abroad if you are The housing in Norway is regarded as claiming a deduction for commuters. independent when: •it is at your disposal for at least 12 Family commuter months and you have access to it every If you have a joint home with children and/ day of the week or a spouse who live in your home country, metres. If there are several people living purposes. You must be able to present in the house/apartment, the area a marriage or birth certificate confirming requirement increases by 20 square the family relationship. In addition, you metres for each additional occupant must be able to document the joint over the age of 15. residential address in your home country. 2 •the living area is at least 30 square you are regarded as a commuter for tax •it has running water and drains Deductions for commuters When you are single, you can claim a You may also be regarded as a commuter deduction for commuting expenses if you even though your housing in Norway is commute to a home abroad and the deemed to be independent. The require- following requirements are met: ments are that: •you do not have independent housing in •you have been registered as resident in Norway •you have independent housing in your home country, or you are under 22 years old at the end of the income year and commute to your parents’ home •you go home once every three weeks. Less frequent home visits can be the same place (municipality) in your home country for three years •you do not let your home in your home country •the housing in Norway is not more than half the size of your home in your home country accepted if there are special reasons for this, for example in cases of illness What deductions can I claim if I am or poor finances. regarded as a commuter? You must also document your residential If you claim the standard deduction for address abroad. foreign employees, you cannot claim further deductions. If you are under 22 years old at the end of the income year and commute to your If you have paid the expenses yourself parents’ home, you must be able to and are not claiming the standard deduction document the family relationship with a for foreign employees, you can claim a birth certificate. In addition, you must be deduction for: able to present documentation of a joint •Travel in connection with home visits. residential address abroad and be able to The rules on travel deductions vary substantiate the number of journeys depending on whether you are travelling between your home abroad and your to a home within or outside the EU/EEA place of residence in Norway. It will area, see below. normally be sufficient that you go home once every six week. •What you have paid for accommodation (rent costs). You must be able to present receipts for the amounts. 3 Deductions for commuters •Extra subsistence expenses at standard NOK 3,300 for the whole year. Instead of rates that are stipulated annually by the the deduction for your actual expenses Tax Administration. For 2014, the rate is for ferry journeys, you can choose a NOK 195 per day. If it is not possible to deduction according to the distance-based cook food where you live, the rate is (standard) rate. NOK 300 per day. With effect from 2014, distance-based If your employer covered some of the deductions will not be granted for the costs, you can only claim a deduction for total annual travel distance which exceeds the costs you covered yourself. If, for 75,000 km. If you claim the distance- example, you have free accommodation based deduction according to the rates, in Norway covered by your employer, you you will therefore not be entitled to a can claim a deduction for subsistence higher annual deduction than NOK 92,500 and for home visits. ((50,000 km x NOK 1.50) + (25,000 km x NOK 0.70)) - 15,000 (non deductible If you commute to your home within the amount). The maximum distance-based EU/EEA area the deductions for travel will deduction will therefore be NOK 77,500. be calculated at a rate per kilometre. The You can also claim actual costs for road number of kilometres is stipulated as the tolls and ferries. shortest travel distance by road and the distance using public transport (excluding If you claim a deduction for your actual air air travel) between your home in Norway fare expenses and in addition the distance- and your home in your home country. You based deduction for some of the travel, must be able to document/substantiate only the part of the travel for which you the number of journeys. The rate for 2014 are claiming the distance-based is NOK 1.50 per km for up to 50,000 km deduction will be included in the limit of per year. For the number of kilometres in 75,000 kilometres. excess of 50,000 km, the rate is NOK 0.70 4 per kilometre. You can claim a deduction If you commute to a home outside the EU/ for your actual expenses for road tolls EEA area, the rules on the distance- and ferries on the part that exceeds based deduction will not apply. Instead, Deductions for commuters you are entitled to a deduction for NOK 82 per day. The savings on house- documented expenses if you use means hold costs have been taken into account of transport other than private car. If you in the deduction rates. are able to document the use of a private car for your travel home, you can claim If you have a tax deduction card that is deduction for expenses according to the based on you using the standard deduction kilometre rates referred to above. The for foreign employees, your employer limit of 75,000 kilometres also applies in must deduct tax on the benefit you derive this case. from having your commuting expenses covered. The employer may also treat the What will I be taxed on if my employer allowance as a taxable allowance in other has covered all my costs, including cases. In such case, the employer must expenses for visits to my home country? report the amounts as a taxable allowance If your employer has covered commuting in the Certificate of Pay and Tax Deducted. expenses, the benefit of this is tax-exempt This is called the «gross method». provided that you would have been entitled to deduct the expenses if you had paid When you fill in your tax return, you must them yourself. The same applies to any choose whether you wish to be taxed in allowances received that do not exceed accordance with the «net method» or the the rates for deductions. It is only any «gross method». You can choose this surplus on allowances that will be taxed as irrespective of which method your employer pay. In your Certificate of Pay and Tax has used. Deducted, your employer must report the amount as a non-taxable allowance. This If your employer has reported an allowance is called the «net method». as a taxable allowance, you can nonetheless choose the «net method» in connection If your employer covered all your subsistence with the tax assessment. This means that costs, either on the basis of receipts or by you must change the amount in your tax providing free board, and you receive this return, so that it will only be any surplus on tax-free, you will be taxed for «savings on the allowance that is deemed to be tax- household costs». For 2014, the rate is able income. If the allowance has resulted 5 Deductions for commuters in a deficit, you can deduct it. If you choose The «gross method» means that the entire the «net method», you cannot claim the allowance and/or benefit derived from the standard deduction for foreign employees. employer covering the costs directly is included in your gross income (personal If it is more favourable for you to use the income). You can then claim the standard standard deduction for foreign employees, deduction for foreign employees. you can choose to be taxed on the benefit you derive from your employer covering The calculation of deductions when the the costs and/or on the allowance received employer has covered board and lodging (the «gross method»). You must in such and home visits case increase the income declared in your If your employer has paid you a bigger tax return by the amount of the benefit. If allowance then the deductible amount, the item is completed in advance in your you must pay tax on the surplus. If your tax return, you must correct the amount employer has paid you a smaller allowance of income entered. In such case, you must then the deductible amount, you can claim also claim the standard deduction for a deduction for the deficit. foreign employees. What is the difference between the «net method» and the «gross method»? The «net method» means that the allowance and/or benefit you derive from your employer covering the costs directly is neither included in your gross income (personal income) nor in your net income (general income). Any surplus on the allowance is taxable. The same applies to the addition for savings in household costs. You can claim a deduction for any deficit on allowances received. 6 Deductions for commuters An example of the calculation of a surplus/deficit on an allowance for board and lodging. You will find the amounts in your Certificate of Pay and Tax Deducted. They are marked code 628. Received as coverage of board and lodging Documented rent (receipts available) NOK 24,000 Deduction for board: 203 days of absence x NOK 195 NOK 39,585 Deficit to be entered as a deduction under item 3.2.7 in the tax return NOK 43,000 NOK 63,585 NOK-20,585 If the allowance results in a surplus, it must be entered as income under item 2.1.4 in your tax return. An example of the calculation of a surplus/deficit on an allowance for home visits. You will find the amounts in your Certificate of Pay and Tax Deducted. They are marked code 725. Allowance received for home visits NOK 10,000 Distance deduction 21,200 km x NOK 1,50 = - NOK 31,800 Deficit before the non-deductible amount = NOK 21,800 Non-deductible amount - NOK 15,000 Deficit to be entered under item 3.2.9 =NOK -6,800 Distance from commuter’s accommodation to workplace 180 x 40 km = 7,200 km Distance from commuter’s accommodation to home 35 x 400 km = 14,000 km Total distance = 21,200 km If the allowance results in a surplus, it must be entered as income under item 2.1.4 in your tax return. 7 Utgitt av: Skatteetaten mars 2014 Published by: Skatteetaten March 2015 Design: TRY Asap RF‑2054 skatteetaten.no Design og illustrasjon: TRY Asap Trykk: HBO RF-2051 skatteetaten.no
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