Fringe Benefits
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Fringe benefits are goods or services that an employer provides to their employees. These can include housing, a car, or even a dog sled. It can also include the value of meals and lodging, or a phone used outside of work hours.
Fringe benefits have a taxable value. All fringe benefits are taxed as A-income. As an employer, it is your responsibility to report the fringe benefits you provide to your employees.
If you, as an employer, report the value of fringe benefits incorrectly, you risk receiving a tax fine.
Fringe Benefits – What is Taxed?
Since 2021, fringe benefits have been taxed as A-income. The taxable value of fringe benefits includes:
Car
Phone
Internet
Free travel
Meals
Lodging
Housing
Vacant housing and pre-vacant housing
The tax rates for fringe benefits change from year to year. You can find the rates here:
Updated rates can be found on the Employer Register at sulinal.nanoq.gl, where companies report the value of these benefits for taxation.
Some employees, such as civil servants, are entitled to an annual tax-free free travel allowance.
If you, as an employer, pay for travel related to an employee’s commencement or termination of employment, it is tax-free. The same applies if you relocate an employee to a different workplace.
Some employees are entitled to travel in cases of critical illness or death in their immediate family. These travels are also tax-free.
All other employer-paid travel, which is not work-related, is taxable.
Free travel is taxed like other fringe benefits as A-income.
Each free trip has a set rate, which determines the taxable amount.
- If the employer-paid free trip costs less than the rate, the employee is taxed based on the actual cost.
- If the trip costs the same or more than the rate, the employee is only taxed based on the rate.
Rates are adjusted annually.
Employers must report free travel to the Employer Register. Updated rates can be found on the Employer Register at sulinal.nanoq.gl.
Since 2013, the value of temporary housing has been taxable. Temporary and pre-temporary housing refers to accommodations, including rooms, dorms, etc., provided as part of an employment relationship before the allocation of permanent staff housing.
It is the employer's responsibility to report the value to the Employer Register along with the salary report.
If you have questions about fringe benefits, you can contact the Employer Register.
Sulinal (Employer Register)
Phone: (+299) 34 60 81
Email: sulinal@nanoq.gl