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If the allowance or reimbursement paid to your employee for the use of their own vehicle is taxable, the value of the benefit is equal to the amount paid to your employee in the year. This amount must be included on the T4 slip of your employee.
Generally, an allowance is non-taxable when it is based solely on a reasonable per-kilometre rate. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed by your employer. The types of expenses you can deduct include: fuel (such as gasoline, propane and oil) and electricity.
Meal and vehicle rates used to calculate travel expenses. The rates for 2024 will be available on our website in 2025. If you are an employer, go to Automobile and motor vehicle allowances. To calculate meal and vehicle expenses, you may choose the detailed or simplified method.
18 sty 2024 · Providing a non-taxable mileage reimbursement in Canada to your employees is tax-free for your business if done under the specific regulations (as reimbursements are deductible business costs), and will ease the burden of work-related expenses for them.
19 gru 2023 · Will your employee mileage reimbursement be taxed? This depends on how your employer processes your claim. If your employer provides an automobile allowance at the standard rate for the relevant year, it would not be taxed.
2 kwi 2024 · Mileage allowance paid to employees or officers is treated as a taxable benefit subject to the employer’s income tax withholding at source. If an employee is provided with the use of a company car, this will be presented as part of their salary, and taxes will be deducted accordingly.
13 maj 2024 · Calculate your mileage reimbursement by multiplying your business-related kilometres with the CRA mileage rate for 2024 - 70 cents for the first 5,000 km. After 5,000 km, the rate decreases to 64 cents per kilometre.
