Frynsegoder

Frynsegoder is the Norwegian term for fringe benefits or perquisites provided by an employer to an employee in addition to the regular salary. They are non-cash benefits with monetary value that may influence the employee’s taxable income. In Norwegian tax law, frynsegoder are distinguished from wages to reflect the non-wage nature of the compensation.

Common examples include a company car with private use, free or subsidized meals, housing allowances or employer-provided housing, employer-paid health insurance, staff discounts, paid gym memberships, and the use of employer-owned devices such as mobile phones for private purposes. Some benefits may be exempt or valued under special rules, depending on the specific type of benefit and applicable thresholds or conditions.

Taxation and reporting: The value of frynsegoder is typically added to the employee’s taxable income and taxed at the marginal rate. Employers are responsible for reporting the value through payroll and the annual A-melding (or equivalent tax reporting) to the tax authorities. Valuation methods can rely on market prices, internal valuations, or standardized rates established by the tax authority.

Legal framework and impact: Frynsegoder affect both income taxation and, in some cases, social security contributions. They contribute to the overall compensation package and influence withholding, pension rights, and tax compliance. The rules aim to ensure transparent compensation practices and prevent tax avoidance through non-cash benefits.

See also: Fringe benefits, Skatteetaten, A-melding.