Per Diem

In Norway, per diem allowances for business travel in 2025 follow regulations set by the Norwegian Tax Administration (Skatteetaten). Here are the key aspects:

Domestic Per Diem Allowances

1. Daily Allowance for Meals & Incidental Expenses: Employees can claim non-taxable per diem rates depending on the nature of their accommodation:
   • With employer-provided lodging (no cooking facilities): Fixed daily rates apply.
   • With private lodging or staying with family: Lower per diem rates apply.
   • With hotel accommodation: Higher per diem rates apply.
2. Time Limits:
   • Deductions for food and lodging expenses are permitted for up to 24 months at a given location.
   • If an employee relocates to a different municipality, a new 24-month period may begin.

Abroad Per Diem Allowances

For international business travel, the per diem rates vary based on the destination country. These allowances typically cover expenses for meals and lodging. The specific daily rates depend on the country’s cost of living and are updated annually. Employers must ensure they comply with the latest Norwegian Tax Administration guidelines.

For detailed rates and conditions, check the official Norwegian Tax Administration website: Skatteetaten.no​

Mileage

In Norway, compliance regulations for mileage related to business travel depend on whether a company vehicle is used and how the travel is documented. The key regulations include:

1. Company Vehicles: If an employee uses a company vehicle for business and private use, the taxable benefit of private use must be determined. This can be assessed using:
   • The ordinary standard method, which considers the list price of the vehicle with a basic deduction.
   • A kilometre rate for private use, which requires an electronic vehicle logbook to track total kilometres driven and the share of business-related travel.
2. Documentation Requirements:
   • Employees must maintain an electronic logbook to record both total and business kilometres.
   • The employer is responsible for reporting the taxable benefit of private use based on the difference between total and business kilometres driven.
3. Withholding Tax and National Insurance Contributions:
   • The benefit from private use of a company car is subject to withholding tax.
   • Employer’s national insurance contributions must be calculated unless the employee qualifies for specific exemptions (e.g., foreign workers under different insurance schemes).
4. Kilometre Rate Example (2024):
   • If an employee drives 1,600 km in a month, with 1,100 km for business travel and 500 km privately, and the kilometre rate is 3.40 NOK/km, the taxable benefit would be:
     • 500 km × 3.40 NOK = 1,700 NOK
   • This amount must be reported in payroll filings.

Employers and employees must stick to the selected valuation method for the entire year unless an electronic logbook is introduced mid-year, allowing a switch to the kilometre-based assessment from the first full month of its use​ skatteetaten.no

Paperless

Foreign companies operating in Norway, including limited companies, have accounting and bookkeeping obligations. If your business operates in Norway or on the Norwegian continental shelf, you are generally required to maintain financial records and submit annual financial statements. However, there are exceptions for companies that operate temporarily and have a revenue below NOK 5 million.

If your company is subject to these obligations, you must ensure that all financial transactions related to assets, liabilities, revenues, and costs are recorded in an accounting system. Additionally, certain businesses must submit annual reports.

For more detailed information on Norway’s accounting and tax requirements for foreign businesses, visit the Norwegian Tax Administration website: Skatteetaten​

Meals, Benefits & Allowances

In Norway, the per diem meal allowances for business travel in 2025 are set based on location and duration of travel. The tax-free per diem rates are as follows:

Domestic travel:

• Over 12 hours: NOK 906 per day.
• Between 6 and 12 hours: NOK 504 per day.

International travel:

• Varies by country and city, with specific rates set by the Norwegian government.

Employers can provide allowances tax-free within these limits. If the provided allowance exceeds these rates, the excess amount is subject to taxation as income for the employee.

For lodging and board provided by the employer, separate taxation rules apply, ensuring compliance with benefit-in-kind regulations​ skatteetaten.no

For 2025, Norway has specific allowances for meals, benefits, and lodging related to business travel. These allowances are typically not subject to withholding tax, provided they follow the official rates set by the Directorate of Taxes.

Allowances for Meals & Lodging:

• Per Diem Rates: Employees on business travel can receive a tax-free allowance for meals and board. However, this is subject to certain conditions, such as proper travel expense documentation and adherence to official daily rates.
• Meal Deductions: If meals are provided as part of the stay, the daily allowance is reduced:
  • Breakfast: Deducted by 20%
  • Lunch: Deducted by 30%
  • Dinner: Deducted by 50%
• Hotel & Commuter Stays: Tax-free board allowances are also available for commuters staying in hotels, provided there are no cooking facilities available at the accommodation.

If an employer pays an allowance above the officially set rates, the excess amount is considered taxable income and must be reported accordingly​ skatteetaten.no

Sales tax rates

Norway’s Value Added Tax (VAT) rates for 2025 are as follows:

• Standard rate: 25% (applies to most goods and services)
• Reduced rate: 15% (applies to food and beverages)
• Lower rate: 12% (applies to passenger transport, hotel accommodations, and some cultural and sporting events)
• Zero rate: Certain exports, financial services, and some health and educational services are exempt from VAT.

For more details, visit the Norwegian Tax Administration’s website​