Automobile you own
There are two methods to calculate the standby charge when you own the automobile – the simplified calculation and the detailed calculation.
The simplified calculation has certain conditions that the employee has to meet. If the conditions are not met, you have to use the detailed calculation. To find out which calculation method is better for your employee, use Form RC18, Calculating Automobile Benefits.
The following information will help you fill in Form RC18 and the Automobile Benefits Online Calculator.
1) Your automobile costs
The cost of your automobile for determining the standby charge is the total of the following two amounts:
- the cost of the automobile when you bought it, including options, accessories, and the GST/HST and PST, but not including any reduction for a trade-in
- the cost of additions (including the GST/HST and PST) you made to the automobile after you bought it (that you add to the capital cost of the automobile to calculate the deduction for depreciation)
Where the automobile was purchased from a non-arm's length person, the cost is generally equal to the fair market value when you bought it, including options and GST/HST or PST.
Specialized equipment you add to the automobile to meet the requirements of a disabled person or for employment (such as cellular phones, two-way radios, heavy-duty suspension, and power winches) are not considered to be part of the automobile's cost for purposes of calculating the standby charge.
If you operate a fleet or pool of automobiles, go to Fleet operations.
2) 30 day periods
When you divide the total days available by 30, round off the result to the nearest whole number if it is more than one.
20 days ÷ 30 = 0.67 (do not round off)
130 days ÷ 30 = 4.33 (round to 4)
135 days ÷ 30 = 4.50 (round to 4)
140 days ÷ 30 = 4.67 (round to 5)
3) Personal kilometres
See the section on Personal driving (personal use) .
A reimbursement is an amount you receive from your employee to repay you for some of your automobile costs. The amount the employee reimburses you may be used to reduce the employee's taxable benefit.
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