![]() ![]() The first 5,000 KM is set to a maximum of 72 cents and the rate for over 5,000 KM driven is set to a maximum of 66 cents.Īll daily trips should be recorded in support of kilometer allowances paid, so information to keep on record would be the date of the trip, the origin and the destination. These rates are higher in the three territories (Yukon, Northwest Territories and Nunavut). KM projected in relation to employer activitiesĪssuming that this company incurred expenses exclusively in the course of commercial activities, and has one employee in British Columbia, one in Ontario and another one in Nova Scotia, the projected input tax credits on kilometer allowances in 2023 to these 3 employees would be about $3K or roughly 10% of all kilometer allowances paid. The amount to be reimbursed to each employee would be $10,220 and is detailed as follows: So, lets take as an example a company where it is projected that on average their employees will be reimbursed the maximum rate in 2023 and these employees will drive 16,000 kilometers in relation to activities of that company. This rule is applicable both for GST/HST/QST purposes and for income tax purposes. For amounts after 5,000 kilometers driven, the rate is set to 62 cents. This is a substantial increase from the KM rate of the year 2022 when we compare with other annual increases. This is a 11% increase in comparison to the rate set for the previous year which was 61 cents that has been implemented by both the Canada Revenue Agency and Revenu Quebec. The per-kilometer rate that is considered reasonable in 2023 is set to 68 cents in a province for the first 5,000 kilometer. ![]()
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