This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious


Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

Email Address: 
Password: 

Login »

Forgotten your password?


Today’s Top Headlines




Canada Reviews Tax Relief For Fringe Benefits

by Mike Godfrey, Tax-news.com, Washington

02 January 2017

The Canadian Government has announced the income tax deduction limits and expense benefit rates that will apply in 2017 when using an automobile for business purposes.

There is one change taking effect as of 2017. The general prescribed rate that is used to determine the taxable benefit of employees relating to the personal portion of automobile operating expenses paid by their employers will be reduced from 26 cents to 25 cents per kilometre. For taxable employees who are employed principally in selling or leasing automobiles, the prescribed rate will be reduced from 23 cents to 22 cents per kilometre.

The limits on the deduction of tax-exempt allowances that are paid by employers to employees who use their personal vehicle for business purposes will remain at the 2016 caps. These were 54 cents per kilometre for the first 5,000 kilometres driven, and 48 cents per kilometre for each additional kilometre. For the Northwest Territories, Nunavut, and Yukon, the tax-exempt allowance is four cents higher.

The ceiling on the capital cost of passenger vehicles for capital cost allowance purposes will remain at CAD30,000 (USD22,335) (plus applicable federal and provincial sales taxes) for purchases after 2016. The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at CAD300 per month for loans related to vehicles acquired after 2016. Finally, the limit on deductible leasing costs will remain at CAD800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2016.

TAGS: tax | business | sales tax | interest | employees | tax thresholds | tax rates | Canada | tax breaks | tax reform

To see today's news, click here.

Leave a comment

Read our Posting Guidelines