Capital Cost of Passenger Vehicles
The ceiling for CCA for passenger vehicles will be increased from $34,000 to $36,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2023.
The ceiling for capital cost allowances (CCA) for zero-emission passenger vehicles will be increased from $59,000 to $61,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2023.
Deductible leasing costs will be increased from $900 to $950 per month, before tax, for new leases entered into.
Tax-Exempt Allowance Limit
The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes will increase by seven cents to 68 cents per km for the first 5,000 km’s driven, and 62 cents for each additional km.
Maximum Allowable Interest Deduction
The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300.00 per month for loans related to vehicles acquired after 2022.
The general prescribed rate used to determine the taxable benefit of employees relating to the personal portion of automobile expenses paid by their employers will be increased by four cents to 33 cents per km.
2023 Automobile Allowance
The automobile allowance rates for 2023 are:
- 68¢ per kilometre for the first 5,000 kilometres driven
- 62¢ per kilometre driven after that
Contact SSL Group for more information.