Benefit-in-kind tax
Private use of a company car is taxed in the same way as a salary, which means that both gross income tax and net income tax are involved. The benefit gained by using a company car is in 2009 based on 30 percent of the car's list price up to NOK 257,100 and 20 percent of the car's list price exceeding NOK 257,100. If you have the company car only part of the year, there will be a partial benefit.

If business mileage exceeds 40,000km per year you will get a 25 percent discount on the list price. The same 25 percent discount also applies if your car is older than 3 years (based on calender year - meaning that in 2009 you get the discount for cars registered in 2005 or earlier). If both the car is older than 3 years and business mileage exceeds 40,000km per year, there is an additional rebate and you will be taxed on 56.25 percent of the cars's list price.

The benefit is based on the initial recommended retail price of the distributor at the time the vehicle is first registered, including VAT and car deposit. The price of all additional equipment such as radio and winter-tyres should be added to the price, irrespective of whether the equipment is bought with the car or at a later stage. This is also the case if the equipment is bought separately by the user.

When gross income including company car benefit is between NOK 441,000 and NOK 716,000, then the marginal tax becomes 44.8%. If the gross income before the company car benefit is added is higher than NOK 716,000 then the marginal tax becomes 47.8%.

Employer's contributions
The benefit obtained by a company car user is subject to full employer's contributions. Employer's contributions vary between 14.1% in urban areas and 0% in some rural areas.