Income tax act s. 6(1)(b)(vii.1), Income Tax Regulations s. 7306
The Income Tax Act sets out the following amounts that may be paid tax-free to employees or officers as reimbursement for motor vehicle expenses incurred while travelling for business purposes, using their personal vehicle:
| Rates per km | 2012 | 2008-2011 | 2007/2006 | 2005 | 2004/2003 |
|---|---|---|---|---|---|
| All provinces | |||||
| -first 5,000 km | $0.53 | $0.52 | $0.50 | $0.45 | $0.42 |
| -over 5,000 km | $0.47 | $0.46 | $0.44 | $0.39 | $0.36 |
| Yukon/Northwest Territories, and Nunavut | |||||
| -first 5,000 km | $0.57 | $0.56 | $0.54 | $0.49 | $0.46 |
| -over 5,000 km | $0.51 | $0.50 | $0.48 | $0.43 | $0.40 |