Can I Claim Firmabil (Company Car) as a Business Expense in Norway?
Company car costs are fully deductible by the AS. However, personal use creates a taxable benefit (fordel) for the employee — calculated at 30% of list price up to NOK 351,700, then 20% above. For electric vehicles (EVs), a reduced benefit applies: 20% of list price up to NOK 351,700 threshold.
What Skatteetaten (Norwegian Tax Administration) says
Skatteloven § 5-13 (benefit in kind for private use of company car). The fordel (taxable benefit) is calculated using the list price (veiledende utsalgspris) as the basis. Skatteetaten publishes tables annually. The employer includes the benefit in the employee's A-melding as wage income subject to income tax, trinnskatt, and arbeidsgiveravgift.
When you can claim
- All company car running costs: fuel/electricity, insurance, servicing, tyres, road tax (fully deductible by AS)
- Depreciation on the vehicle (saldogruppe c: 24% declining balance for ordinary cars; EVs in saldogruppe d: 30%)
- Leasing payments (operating lease: fully deductible; finance lease: treated as ownership)
- Electric vehicle company car — same deductibility, lower taxable benefit for the employee
- Commercial vehicles (lastebil, varebil klasse 2) — full deductibility with no taxable benefit for work use
When you cannot claim
- Private motoring costs where no company car is provided — personal car expenses are personal (use kilometersats instead)
- Traffic fines — never deductible
- Luxury upgrades that are not commercially justifiable
Good to know
Pro tip: EVs have a significantly lower taxable benefit (approximately 26% lower for cars around the NOK 500,000 price point). For businesses committed to a company car, an EV almost always makes more sense from a total tax perspective plus lower running costs.
Important: The fordel is calculated on list price, not what the company actually paid. A heavily discounted car still carries full list-price taxable benefit. The benefit is added to the employee's wage income — making high-list-price vehicles very costly in total tax terms.
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