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