You provide a vehicle other than an automobile

If you provide your employee a motor vehicle that is not defined as an automobile, calculate the taxable benefit for the employee's use of the vehicle between home and work based on fixed rates or fair market value. If all of the following conditions are met, you can choose to use a rate of 27 cents per kilometre for 2020 and 2021.

  1. The motor vehicle is not an automobile.
  2. You tell your employee in writing that he or she cannot make any personal use of the vehicle, other than travelling between work and home. Your employee will have to maintain full logbooks of the vehicle's use as proof that there was no other personal use.
  3. You have valid business reasons for making the employee take the vehicle home at night, such as:
    • it would not be safe to leave tools and equipment at your premises or on a worksite overnight
    • your employee is on call to respond to emergencies (see Note), and you provide the vehicle so the employee can respond more effectively to emergencies
  4. The motor vehicle is specifically designed or suited for your business or trade and is essential for the performance of your employee's duties. Just transporting the employee to the work location does not meet the condition of "essential in the performance of employment duties." The following examples meet both conditions:
    • The vehicle is designed, or significantly modified, to carry tools, equipment, or merchandise. Your employee has to have the vehicle to do his or her job.
    • The vehicle, such as a pickup truck or a van, is suitable for and is consistently used to carry and store heavy, bulky, or numerous tools and equipment. It would be difficult to load and unload the contents. The vehicle is essential to your employee in performing his or her job.
    • The vehicle is regularly used to carry harmful or foul-smelling material, such as veterinary samples or fish and game. The vehicle is essential to your employee in performing his or her job.
    • Your employee is on call for emergencies (see Note), and has to use a vehicle which:
      • is a clearly marked emergency-response vehicle
      • is specially equipped to respond rapidly
      • is designed to carry specialized equipment to the scene of an emergency


We generally consider an emergency to relate either to the health and safety of the general population or to a significant disruption to the employer's operations.

Rates when conditions are not met

If any of conditions one to four above are not met, you cannot use the reduced rate of 27 cents per kilometre for 2020 and 2021. Instead, see Automobile and motor vehicle benefits.

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