Less favorable fringe benefits in 2019

(Mallorca): For both the employer and the employee have in some contexts been considered a good idea to take out the salary increase in the form of tax-free benefits in kind, or fringe benefits as it is also known. In the morning come, however, until new rules are in force.

the Regulations were finally adopted right before christmas, and is seen as a tightening of the current regulations.

For example, to kindergarten no longer be a tax-free naturalytelse.

Now disappear this very favorable frynsegodet. That the authorities choose to tax paid kindergarten hangs enough along with the fact that most places now have almost full kindergarten, " says Rolf Lothe, fagsjef in Skattebetalerforeningen.

He states that education thus stands again as the most favorable frynsegodet an employee can get. Here it happens, no changes.

- Master's degree part-time is an example of what an employer can cover tax-free, provided that the developed expertise that can be utilized in current employment or in future employment with current employer.

the Price of such education can easily be a couple hundred thousand dollars.

Lucrative

One of those who have taken training sponsored by the employer without having to pay tax on the benefit, the auditor Erik Forseth Helgesen in EY. 28-year-old came recent graduate from the Norwegian School of economics (NHH) in 2015.

After a one-year job in the revisjonsgiganten, he got the offer to go back to school at BI Norwegian School of management to take the programme accounting and auditing.

Since he already had a master's degree in economics and administration from NHH Norwegian school of economics, needed only two semester to approved revisjonsgraden.

- Then covers the job the tuition and I got at the same time scholarship from EY which constitutes 60 per cent of the fixed salary. This scholarship is trekkpliktig. The only time I worked along the way were three weeks in January, which is a part of the contract.

In 2016 the cost of this degree in less than 45.000 million per. semester. Would he even have even paid for his education, had to have he earned 160.000 million assuming a marginal tax of nok 43.1 per cent.

He looks at this as a very lucrative offer.

I think it is all right that they will invest so much in my experience. I don't think there are many other industries that have a similar type of scheme where one pays one year of tuition fees and provides scholarships at the same time, " says Helgesen and continues:

at the same time I understand that it is an investment that the employer wants to take. For that the company should be able to develop themselves and be able to have the right qualifications and expertise in the long term must invest in their employees, " he says.

the Requirement according to the regulations for benefits in kind is that education must not oversige four semesters full-time, option the equivalent amount spread over a longer time. The employer will not employer's contribution for the costs of education for employees.

It is also possible to get tax-free education covered by the employer upon the termination of the employment, so long as the value not higher than 1.5 G, " says Lothe.

For some, it may therefore be beneficial to negotiate this in a severance package.

More innstramminger

Personalrabatter, that many employees, including in the consumer products companies have benefited from, may also in lesser degree be used as a tax-free frynsegode in 2019.

- the Rules for personalrabatter has previously been discretionary, and how much discount an employee could get tax-free has been depending on where in the varekjeden the employee has worked, " says Lothe.

- Now the rules have been completely square. It is possible to get a tax rebate of up to 50 percent of the price in the end market, and up to 7.000 million a year. Discounts beyond that are taxable, and the basis for employer's national insurance contributions for the company.

- For example, employees of car dealers, who have previously received a discount on their own cars, will be able to mark it well, " says Lothe.

Employees in clothing stores are another group that may be affected.

Also minor changes related to paid overtidsmat and gifts to employees who have worked long in the company can affect the individual employees.

For other fringe benefits, free car, cheap loans with their employer, firmahytter and the valuation of the telephone, there are no changes.

Convenient electric vehicle

A frynsegode which thus still are very beneficial is the electric vehicle as a company car.

Historically, company cars have been one of the most common frysegodene in Norway, but the tax means that it is not always good for the recipient, " says Lothe.

- Whether or not it is actually profitable depends on how much one is running private. With a company car are namely regardless taxed as if you had run 15.000 km in a year.

the Benefit of private use of a company car is determined to 30 percent of biles list price as new up to 303.900, and 20 per cent of the excess list price.

For an electric car is it by the calculation been based on only 60 per cent of the car's list price as new.

the Rate was raised from 50 to 60 per cent for 2018, but it is not proposed any new elevation. So it is still beneficial to have an electric car as a company car, " says Rolf Lothe in the Tax betalerforeningen.

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