Benefits in kind – what is taxable?

The general rule is that any economic benefit you receive because of your employment is taxable unless a specific exemption applies. The exemptions are specific and have limits: gifts NOK 5,000, staff discount NOK 10,000, overtime meals NOK 200 per day, electronic communication a maximum income addition of NOK 4,392. The benefit can also come from a customer or a supplier.

Three questions an employer has to ask

For every benefit in kind, consider: 1. Is the benefit taxable for the employee? 2. Is it subject to withholding? 3. Do employer's contributions apply? Benefits subject to withholding normally form part of the employer's contribution basis too. Benefits in kind are as a general rule valued at what the employee would have had to pay in the end-user market – not at the employer's purchase price – unless the law provides a specific formula.

Phones and broadband

Where an employer covers electronic communication that is also available privately, the EKOM rules apply. The maximum income addition is NOK 4,392 a year, regardless of whether the employer covers one service or several. A mobile and broadband together therefore give the same maximum addition as a mobile alone. Where the equipment or subscription is not available privately, the assessment can be different.

Gifts: NOK 5,000 a year

In 2026 an employer can give tax-free gifts of up to NOK 5,000 per employee per year. The gift has to be a benefit in kind. Cash is not covered, but a gift card that cannot be exchanged for cash can qualify. There are separate rules and higher limits for certain long-service and commemorative gifts – including up to NOK 8,000 for employees with at least 20 years' service, and every ten years after that.

Staff discount: NOK 10,000 – or 15,000

A staff discount on goods and services sold in the employer's business or group is tax-free up to NOK 10,000 per employment per year. From 2025 the limit rose from NOK 8,000. Any unused part of the general NOK 5,000 gift limit can be used on the staff discount as well. Where the employer has given no other gifts, the discount can in practice be tax-free up to NOK 15,000. The two limits are therefore connected, and the Christmas gift eats into the discount headroom.

Overtime meals

An employer can cover documented overtime meal costs tax-free up to NOK 200 per day, where the employee works at least 10 consecutive hours away from home and the other conditions are met. Undocumented «meal money» is not automatically tax-free. The receipt is part of the condition, not just part of the bookkeeping.

Exercise

A personal gym membership paid by the employer is normally taxable. An exemption can apply where exercise is a modest, collective welfare measure organised for all or a substantial group of employees, or a specific, professionally justified injury-prevention measure connected to particularly demanding work. A gym room on the company's premises can qualify. An individual membership with free use of an ordinary gym normally does not. For a small single-owner AS the welfare rules are also narrower than many assume. A company with only the owner as an employee normally cannot use the collective welfare rules the way a company with several employees can – there is no «group» for a collective measure to serve.

Work clothing

Protective clothing, uniforms and clothes poorly suited to private use can normally be tax-free work equipment. An ordinary suit, shirt or pair of shoes does not become tax-free simply because it is worn in client meetings. The test is whether the garment is suited to private use, not whether it is actually used privately.

Home office equipment

A computer, screen, office chair and other equipment can be made available without tax where the main purpose is use at work. That is different from covering private housing costs. The distinction, and the rules for the room itself, are in A home office – what can you actually deduct?

Benefits from customers and suppliers

Bonus points, discounts, gifts and other benefits from a third party can be taxable where they are connected to the employment. The employer has the reporting responsibility where the employer has, or ought to have, information about the benefit. The business should therefore have a practical routine for employees to report private use of bonus points and other third-party benefits. «We did not know» is not a good answer where the test is «ought to have known».

Owner-employees: salary or dividend?

Where the recipient is also a shareholder, you have to ask why the benefit was given. Where the benefit has its basis in the employment, it is normally treated as salary and a benefit in kind. Where the company covers a private cost because the person is a shareholder, without a sufficient connection to work, the benefit can instead be a dividend or another distribution. That distinction affects both the company's right to a deduction and the employer's contributions – and it is the same line as in Loans from your own company

Reporting

Taxable benefits in kind are normally reported in the a-melding for the month the benefit is received or made available. Employer's contributions are calculated on the assessed taxable benefit, not necessarily on the employer's purchase cost. We can set up routines for gifts, staff discounts and third-party benefits, and make sure benefits are valued and reported correctly.

This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.

Is it urgent?

We can work out what actually has to be done, what documentation exists and how quickly it can be sorted. You can also reach us in the evenings and at weekends.

GET IN TOUCH