Automobile and motor vehicle benefits
The term vehicle includes both automobiles and motor vehicles not defined as automobiles.
An employee may use one of your vehicles for purposes other than business. The personal use of the vehicle is considered a taxable benefit for the employee. For more information, see Personal driving (personal use).
An employee may use their personal vehicles to carry out their employment duties and get an allowance for the business use of that vehicle. The reimbursement for this use may be a taxable benefit. For more information, see Automobile and motor vehicle allowances.
If the vehicle you provide to your employee is not included in the definition of automobile as described, see Benefit for motor vehicles not defined as an automobile.
Topics
- Calculating automobile benefits
- Calculating a standby charge for automobiles you own or lease
- Calculating an operating expense benefit
- Benefit for motor vehicles not defined as an automobile
- Fixed rate calculation
- Payroll deductions for automobile or motor vehicle benefits
- Reporting automobile or motor vehicle benefits
Related links
- Facts about automobile and other vehicle benefits and automobile allowances
- Government announces the 2020 automobile deduction limits and expense benefit rates for businesses (Department of Finance Canada website)
- Government announces the 2021 automobile deduction limits and expense benefit rates for businesses and Temporary Adjustments to the Automobile Standby Charge due to COVID-19 (Department of Finance Canada website)
- Government announces the 2022 automobile deduction limits and expense benefit rates for businesses (Department of Finance Canada website)
Multimedia
- Podcast: Automobile and motor vehicle benefits | 19:25 min.
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