Changes in effect – Automobile expenses

changes-in-effect-automobile-expenses

As at 2019, changes, announced at the end of 2018 by the Ministry of Finance Canada, will take place for citizens who utilize their vehicles for work. Announced at the end of 2018 by the Department of Finance Canada. Here is an excerpt:

 

“The limit on the deduction of tax-exempt allowances that are paid by employers to employees who use their personal vehicle for business purposes for 2019 will be increased by 3 cents to 58 cents per kilometre for the first 5,000 kilometres driven, and to 52 cents per kilometre for each additional kilometre. For the Northwest Territories, Nunavut and Yukon, the tax-exempt allowance is 4 cents higher, and will be increased to 62 cents per kilometre for the first 5,000 kilometres driven, and 56 cents per kilometre for each additional kilometre. These allowances are intended to reflect the main costs of owning and operating an automobile, such as depreciation, financing, insurance, maintenance, and fuel.”

 

For more details regarding the 2019 Automobile Deduction Limits and Expense Benefit Rates for Businesses, contact Annie Morand or visit the Government of Canada website.