Lone change announced to income tax deduction limits and expense benefit rates for 2017
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The rate determining employees’ taxable benefits when using a personal automobile for business purposes is dropping by one cent per kilometre.
The general prescribed rate used to determine the taxable benefit paid by employers has been reduced by a penny to 25 cents per km, Canada’s Finance Minister Bill Morneau recently announced.
It was the lone change in terms of income tax deduction limits and expense benefit rates for 2017.
Additionally, for taxpayers who are employed principally in selling or leasing cars, the prescribed rate used to determine an employee’s taxable benefit will be reduced by one cent to 22 cents per km.
The amount of this benefit is intended to reflect the costs of operating an automobile.
The additional benefit of having an employer-provided vehicle available for personal use is calculated separately based on capital costs and is also included in the employee’s income.
