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Directive on Travel, Hospitality, Conference and Event Expenditures

Supporting tools.

• Proactive Publication of Travel and Hospitality Expenses, Guide to the
• Travel, Hospitality, Conference and Event Expenditures, Guide to

More information

• Financial Management, Policy on

Terminology:

• Financial management

This directive replaces:

• Management of Expenditures on Travel, Hospitality and Conferences, Directive on the [2017-04-01]
• Travel, Hospitality, Conference and Event Expenditures, Directive on [2017-04-01]
• Travel, Hospitality, Conference and Event Expenditures, Directive on [2019-06-21]

1. Effective date

• 1.1 This directive takes effect on April 1, 2017 and incorporates changes effective as of August 1, 2020 .
• 1.2 This directive replaces the Directive on Travel, Hospitality, Conference and Event Expenditures dated August 1, 2013 .

2. Authorities

• 2.1 This directive is issued pursuant to section 7 of the Financial Administration Act .

3. Objectives and expected results

• 3.1 The objectives indicated in section 3 of the Policy on Financial Management apply to this directive.
• 3.2 The expected results indicated in section 3 of the Policy on Financial Management apply to this directive.

4. Requirements

• 4.1.1 Approving the departmental total annual budgets for travel, hospitality and conferences;
• 4.1.2 Disclosing the total annual expenditures for each of travel, hospitality, and conference fees for the department, including the main variances from the previous fiscal year’s actual expenditures. This disclosure is to coincide with the tabling of the Departmental Results Report; and
• 4.1.3 Ensuring that the standards for travel, hospitality, conferences and events, set out in appendices A to D , are clearly communicated to departmental staff.
• 4.2.1 Considering in the approval process the means to avoid or minimize travel, hospitality, conference and event costs;
• 4.2.2 Ensuring that travel, hospitality, conference and event expenditures are necessary to support the departmental mandate, operational activities, objectives or priorities; and
• 4.2.3 Ensuring that any applicable provisions of legislation, regulation, orders-in-council, National Joint Council directives, collective agreements or Treasury Board–approved instruments are respected in the management of travel, hospitality, conference and event expenditures; and
• 4.2.4 Ensuring that standards for travel, hospitality, conferences and events, set out in appendices A to D , are applied.

5. Roles of other government organizations

• 5.1 Not applicable.

6. Application

• 6.1 This directive applies to the organizations listed in section 6 of the Policy on Financial Management .
• 6.2 With respect to the Office of the Auditor General, the Office of the Chief Electoral Officer, the Office of the Commissioner of Lobbying of Canada, the Office of the Commissioner of Official Languages, the Office of the Information Commissioner of Canada, the Office of the Privacy Commissioner of Canada and the Office of the Public Sector Integrity Commissioner, the deputy heads of these organizations can exercise the ministerial approval authorities in this Directive, including the delegation of approval authorities to the appropriate managers.
• 6.3 Appendix B of this directive does not apply to hospitality governed by the Official Hospitality Outside Canada (OHOC) policy established by Global Affairs Canada and the Heads of Post and Foreign Service Official Hospitality directives.

7. References

• Financial Administration Act – Sections 7 and 9
• Access to Information Act (proactive publication requirements outlined in sections 82 and 83)
• National Joint Council Foreign Service Directives
• National Joint Council Isolated Posts and Government Housing Directive
• National Joint Council Relocation Directive
• National Joint Council Travel Directive
• Special Travel Authorities
• Policies for Ministers’ Offices
• Values and Ethics Code for the Public Sector
• Information Bulletin: Conference attendance by members of the Research (RE) group

8. Enquiries

• 8.1 Members of the public may contact TBS Public Enquiries regarding any questions about this directive.
• 8.2 Individuals from departments should contact their departmental financial policy group regarding any questions about this directive.
• 8.3 Individuals from a departmental financial policy group may contact Financial Management Enquiries for interpretation of this directive.

Appendix A: Standard on Travel

A.1 effective date.

• A.1.1 This standard takes effect on April 1, 2017 , and incorporates changes effective as of August 1, 2020 .
• A.1.2 This standard replaces the Directive on Travel, Hospitality, Conference and Event Expenditures, Appendix 1 dated August 1, 2013 .

A.2 Standards

• A.2.1 This standard provides details on the requirements set out in sections 4.1 and 4.2 of the Directive on Travel, Hospitality, Conference and Event Expenditures.
• A.2.2.1.1 Limiting the number of departmental travellers to the minimum necessary to deliver the business of the government; and
• A.2.2.1.2 Selecting the most economical means of travel when booking transportation, accommodations and meeting facilities;
• A.2.2.2 Ensuring that the travel entitlements under provisions in the National Joint Council Foreign Service Directives , the National Joint Council Relocation Directive or the National Joint Council Isolated Posts and Government Housing Directive are not subject to travel expenditure initiation under this Appendix. Travel costs authorized by these directives are to be coded in the Government-wide Chart of Accounts solely to those items;
• A.2.2.3 Advising ministers and their exempt staff that their travel undertaken in support of departmental business is not subject to travel expenditure initiation under this Appendix;

Travel Authorization (Approval authority required for expenditure initiation)

• A.2.2.4.1 The program’s operations are regionally or globally dispersed and there is no senior departmental manager present in certain offices;
• A.2.2.4.2 The operational requirements for travel are frequent, may involve a significant number of travellers and concentrating approvals with one position would create potential delays; or
• A.2.2.4.3 The potential for delay in obtaining approval could be injurious to the public interest or the timely delivery of departmental services or operations;
• A.2.2.5.1 Approval by the delegated manager for a trip; or
• A.2.2.5.2.1 Significant changes to trips within the travel plan are to be reapproved by the delegated manager;
• A.2.2.6.1 Local travel within the normal office location and surrounding working area of a public servant; or
• A.2.2.6.2.1 Expenditure initiation approval for such emergency travel can be authorized by the appropriate fund centre manager with subsequent disclosure of the travel costs to the deputy head;
• A.2.2.7.1 Operational activities - Travel required to support the department’s operational activities (other than the following categories), legislative or legal requirements;
• A.2.2.7.2 Key stakeholders - Travel necessary to engage key stakeholders in relation to such matters as policy, program or regulatory development or renewal;
• A.2.2.7.3 Internal governance - Travel necessary to support sound internal departmental governance;
• A.2.2.7.4 Training - Travel necessary to enable the training of public servants; and
• A.2.2.7.5 Other travel;
• A.2.2.9 Acting as the delegated travel approval authority in situations where the traveller is the deputy head;
• A.2.2.10 Ensuring that a blanket travel authority (BTA), as specified under the National Joint Council Travel Directive, include all Table 1 information;

Companion Travel

• A.2.2.11 Ensuring that travel expenditures for companions are prohibited unless expressly provided for under legislation, regulations, orders-in-council, National Joint Council directives, collective agreements or other Treasury Board–approved instruments, or unless ministerial approval is granted pursuant to A.2.2.12.
• A.2.2.12 Seeking ministerial approval for expenditure initiation of companion travel expenses in situations not provided for under legislation, regulations, orders-in-council, National Joint Council directives, collective agreements or other Treasury Board–approved instruments. This authority can only be delegated to the deputy head.

Additional Reporting

• A.2.2.13.1 The travel category (element B specified in Table 1) for authorized travel; and
• A.2.2.13.2 Both authorized and actual data for elements F to I specified in Table 1.
• A.2.2.14 Disclosing the aggregate of actual annual expenditures of the travel categories, as part of 4.1.2 under this directive.

Appendix B: Standard on Hospitality

B.1 effective date.

• B.1.1 This standard takes effect on April 1, 2017 , and incorporates changes effective as of August 1, 2020 .
• B.1.2 This standard replaces the Directive on Travel, Hospitality, Conference and Event Expenditures, Appendix 2 dated August 1, 2013 .

B.2 Standards

• B.2.1 This standard provides details on the requirements set out in sections 4.1 and 4.2 of the Directive on Travel, Hospitality, Conference and Event Expenditures.
• B.2.2.1 Ensuring that decisions to offer hospitality are carefully considered and necessary based on courtesy, diplomacy, protocol or to facilitate the achievement of the business of the government.
• B.2.2.3.1.1 There are no nearby or appropriate facilities to obtain refreshments or meals; or
• B.2.2.3.1.2 Staff dispersal is not effective or efficient;
• B.2.2.4 Ensuring that meals provided to public servants in the course of their duties, where a department has no discretion in their provision, are not subject to hospitality authorization under this directive;
• B.2.2.5.1 Alcoholic beverages;
• B.2.2.5.2 Entertainment activities;
• B.2.2.5.3 Local transportation to and from an event or activity; and
• B.2.2.5.4 Facility rental and associated items which are directly and inherently for hospitality purposes;

Hospitality Authorization (Approval authority required for expenditure initiation)

• B.2.2.6.1 Total hospitality costs exceed $10,000;
• B.2.2.6.2 Alcoholic beverages will be provided;
• B.2.2.6.3 Food and beverage costs exceed the standard cost per person, up to the maximum cost per person (Table 2);
• B.2.2.6.4 Food and beverage costs exceed the maximum cost per person (Table 2);
• B.2.2.6.5 Entertainment will be provided;
• B.2.2.6.6 Hospitality or entertainment will be provided to a person accompanying an event participant; or
• B.2.2.6.7 Hospitality paid by the federal government will be extended at the residence of a public servant;
• B.2.2.7.1 When the total hospitality costs exceed $3,000 but are $10,000 or less and, if delegated to the deputy head, any components listed in B.2.2.6 requiring ministerial approval that are present;
• B.2.2.8 Ensuring that approval of the senior departmental manager, or the delegated manager, is obtained when total hospitality costs associated with the event are $3,000 or less, and none of the elements listed in B.2.2.6 are present;
• B.2.2.9 Ensuring that, with the exception of the minister, an appropriate alternative approval authority is obtained when the individual who would normally approve the hospitality is also a participant at the hospitality activity;
• B.2.2.10 Approving hospitality up to the deputy head limits set out in B.2.2.7 in situations where the deputy head is in attendance at a hospitality activity and would normally approve the hospitality;
• B.2.2.11.1 Approved for use within a particular fiscal year;
• B.2.2.11.2.1 Quarterly internal departmental reporting, at a minimum, of planned and actual blanket hospitality authorities expenditures; and
• B.2.2.11.3 Reapproved for individual hospitality prior to its occurrence, if possible, when there are any exceptions to the BHA parameters.

Private Club Memberships

• B.2.2.12 Ensuring that the purchase of private club memberships is prohibited unless expressly permitted under legislation, regulations, orders-in-council, National Joint Council directives or other Treasury Board–approved instruments, or unless ministerial approval is granted pursuant to B.2.2.13.
• B.2.2.13 Seeking ministerial approval for private club memberships in situations not covered under legislation, regulations, orders-in-council, National Joint Council directives or other Treasury Board–approved instruments. This authority can only be delegated to the deputy head.

Appendix C: Standard on Conferences

C.1 effective date.

• C.1.1 This standard takes effect on April 1, 2017 .
• C.1.2 This standard replaces the Directive on Travel, Hospitality, Conference and Event Expenditures, Appendix 3 dated August 1, 2013 .

C.2 Standards

• C.2.1 This standard provides details on the requirements set out in sections 4.1 and 4.2 of the Directive on Travel, Hospitality, Conference and Event Expenditures.
• C.2.2.1 Ensuring that the objective of attending a conference is specified in the applicable conference approval document. Where travel is involved, the travel authorization elements of Table 1 in Appendix A will apply;
• C.2.2.2 Limiting the number of public servants attending a conference from a department to the minimum necessary to achieve the departmental objective;

Conference Authorization (Approval authority required for expenditure initiation)

• C.2.2.3 Ensuring that the conference approval authority set out in the departmental delegation of financial and spending authorities chart is at the senior departmental manager level; and
• C.2.2.4 Ensuring that when multiple public servants attend the same conference, event approval is obtained for the total planned conference costs as set out in Appendix D.

Appendix D: Standard on Events

D.1 effective date.

• D.1.1 This standard takes effect on April 1, 2017 .
• D.1.2 This standard replaces the Directive on Travel, Hospitality, Conference and Event Expenditures, Appendix 4 dated August 1, 2013 .

D.2 Standards

• D.2.1 This standard provides details on the requirements set out in sections 4.1 and 4.2 of the Directive on Travel, Hospitality, Conference and Event Expenditures.
• D.2.2.1 Ensuring that the appropriate number of public servants attend an event when the total event costs are submitted for approval, as specified in D.2.2.3 to D.2.2.6;
• D.2.2.2 Ensuring that training activities are not considered as an event and are approved as part of an individual’s training plan by the appropriate manager as set out in the departmental delegation of financial and spending authorities chart;

Event Authorization (Approval authority required for expenditure initiation)

• D.2.2.3 Seeking ministerial approval when total departmental costs associated with an event exceed $50,000;
• D.2.2.4 Ensuring that the minister is provided with the total estimated federal cost for all participating departments, including the total estimated travel costs, for information purposes, when their approval is required for an event hosted by the department;
• D.2.2.5 Seeking deputy head approval of an event when total departmental costs associated with the event exceed $25,000 but are $50,000 or less; and
• D.2.2.6 Ensuring that approval of the senior departmental manager or the delegated manager of an event is obtained when the total departmental costs associated with the event are $25,000 or less.

Appendix E: Definitions

Involve gatherings of individuals (both public and/or non-public servants) engaged in activities other than operational activities of the department. Examples of events include, but are not limited to:

• Management and staff retreats;
• Participation in conferences;
• Awards and recognition ceremonies; and
• Departmental celebrations.

Are those activities undertaken to deliver departmental programs and services including departmental internal services.

For individuals, operational activities are those activities undertaken in the performance of their assigned tasks, as set out in position descriptions, terms of reference, statements of work or other like documents.

Any gathering of individuals, the purpose of which is not to conduct operational activities, shall be defined as an “event”.

© Her Majesty the Queen in Right of Canada, represented by the President of the Treasury Board, 2017, ISBN: 978-0-660-09713-8

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Appendix C - Allowances - Modules 1, 2 and 3

• Current - April 1, 2024
• October 1, 2023
• April 1, 2023
• October 1, 2022
• April 1, 2022
• October 1, 2021
• April 1, 2021
• October 1, 2020
• April 1, 2020
• October 1, 2019
• April 1, 2019
• October 1, 2018
• April 1, 2018
• October 1, 2017
• July 1, 2017
• April 1, 2017
• October 1, 2016
• April 1, 2016
• October 1, 2015
• April 1, 2015
• October 1, 2014
• April 1, 2014
• October 1, 2013
• April 1, 2013
• October 1, 2012
• April 1, 2012
• October 1, 2011
• April 1, 2011
• October 1, 2010
• April 1, 2010
• October 1, 2009
• April 1, 2009
• October 1, 2008
• April 1, 2008
• October 1, 2007
• Private non-commercial accommodation
• Incidental expenses
• Weekend travel home transportation

Effective Date: April 1, 2024

CRA Mileage Rate 2024: Guide to Tax-Free Vehicle Allowances For Business Travel

Cra mileage rate 2024.

Are you an employee, small business owner, or self-employed individual looking to understand the rules and regulations of CRA mileage rate this 2024 ? Canadian taxpayers need to be aware of what they can expense on their taxes as entertainment, such as meals or kilometres travelled in a car.

We will discuss all relevant to ensure you maximize your deductions for businesses travelling while remaining compliant.

Key Takeaways

• 70¢ per kilometre for the first 5,000km driven
• 64¢ per kilometre after that
• 74¢ per kilometre for the first 5,000km driven
• 68¢ per kilometre after that

Changes to the CRA mileage rate for 2024

When reimbursing employees for business travel, the Canada Revenue Agency (CRA) has set out a specific set of rules that employers must adhere to. Canadian taxpayers should be aware of these rules when managing their business expenses to avoid any penalties from the CRA.

The 2024 standard CRA mileage rate per kilometre is currently 70 cents with a 4-cent per kilometre reduction after the first 5,000 kilometres driven yearly.

Here’s the CRA’s Automobile Allowance Rates for the past five years:

You can report any tax-subjected automobile allowances paid to employees or officers on Form T2200 Declaration of Conditions of Employment .

Employers can claim input tax credits based on reimbursements made for these expense claims but must ensure they keep detailed records alongside invoices related to any incurred costs.

Businesses must recognize reimbursement requirements, as failure to comply could result in CRA-implemented fines and other financial penalties, which will financially affect both employers and their staff.

What is CRA mileage allowance and tax-free vehicle allowance in Canada?

The CRA mileage rates are a guide set by the Canada Revenue Agency to reimburse taxpayers for vehicle expenses incurred for business use. They calculate the deductible expenses related to operating a vehicle for business, medical, moving, or charitable purposes. Taxpayers can use these rates to calculate their deductible vehicle expenses when filing their income tax returns.

How to use the 2024 CRA mileage rate and automobile allowance: Salaried workers, Self-employed, and Employers

Mileage reimbursement rules for salaried workers.

Employees may be eligible to claim allowable motor vehicle expenses on their income tax return if they incurred these expenses under the terms of their employment contract. For instance, if an employer agrees to reimburse travel expenses for using one’s personal vehicle for work-related tasks.

However, it’s essential for employees to maintain accurate records and evidence to substantiate that the kilometers claimed were indeed for business purposes.

Mileage Reimbursement Rules for Self-employed

Self-employees can also deduct business-related vehicle expenses. This also applies to personal cars used for business purposes such as purchasing supplies for your businesses, meeting with clients, attending conferences, or visiting customers. Other expenses may also include:

• License and registration fees
• Fuel and oil expenses
• Insurance fees
• Maintenance and repairs expenses
• Leasing costs
• Capital cost allowance

The allowance will be deducted in the annual tax returns. But remember, self-employees must keep receipts and invoices in order to get deductions. Expenses incurred for personal use of their personal vehicle will not be eligible for coverage under the allowance.

Mileage Reimbursement Rules for Employers

There is no law mandating that employers must compensate employees for using their personal vehicles for business purposes – this depends on individual company policies or contracts.

Nevertheless, implementing a mileage allowance using Canada Revenue Agency (CRA) standards can make a job offer more attractive to potential employees, as it compensates for their personal vehicle usage.

With a CRA mileage allowance, employers are obliged to cover employees’ work-related vehicle expenses. This reimbursement also provides a tax benefit for the company. To qualify as legitimate and tax-deductible, the reimbursement should:

• Cover the yearly amount of kilometres driven solely for business purposes
• Be based on a reasonable per-kilometre rate or slightly lower than the official CRA vehicle allowance rates
• Be for the employee who hasn’t already been reimbursed for the same use of their vehicle.

If these conditions are met, the mileage reimbursement is considered a non-taxable benefit for employees.

Eligibility For CRA Mileage Rate 2024 And Tax-Free Vehicle Allowances

The CRA provides rules and regulations for claiming tax-free vehicle allowances and mileage rates when travelling for business purposes.

You are also eligible if you use your car to attend conventions, seminars or meetings, and other activities with work-related purposes away from home. But travelling from your home to your normal place of work is not considered business-related driving.

The type of transportation used is essential—employees using public transport, such as buses and subways, do not qualify for any reimbursements. At the same time, those who choose personal cars will receive a predetermined per-kilometre rate (according to the CRA standard mileage rate as shown above).

4 Types Of Business Travel Eligible For CRA Mileage Rates And Tax-Free Vehicle Allowances

• Regular Work Locations
• Temporary Work Locations
• Home Office as a Regular Work Location
• Commuting to Work

Whether travelling for regular work locations, temporary work locations, home office or commuting to work, you’ll find everything you need to know about the CRA mileage rates and tax-free vehicle allowances here.

Canada Revenue Agency (CRA) defines regular work location as any workplace that the employee visits at least once a week on a sustained basis for a purpose related to their employment.

It includes both long-term and short-term job positions or assignments. The employer must be able to provide sufficient proof of attendance; records such as timesheets should help demonstrate this.

In addition, travel expenses associated with these locations are only eligible for reimbursement if they are located more than 80 km (one way) from the primary place of business or residence of the employee.

For example, an accountant who works in Toronto but travels to Ottawa each weekend would likely qualify for CRA mileage rate reimbursements since it’s more than 160 km one way between cities—even if he has not been assigned there permanently yet.

Any work location other than an employee’s regular place of employment is considered a “temporary” work location and would be eligible for mileage rate and tax-free vehicle allowances.

According to CRA guidelines, temporary locations last up to four weeks or have been pre-approved by the employer in writing. Considering all surrounding circumstances, the employer must demonstrate why the travel was reasonable.

Any expenses related to this travel, such as lodging, meals, allowance and specific motor vehicle rates, can be deducted from income if proven to be necessary business or relocation expenses incurred during that journey.

• Home Office As A Regular Work Location

Home offices may qualify for either CRA mileage reimbursement or tax-free vehicle allowance when it is determined to be a regular work location.

To qualify as a regular work location, the home office must be used for working with clients or customers more than 50% of the time each month and must meet specific criteria, such as having private entrances, separate telephone lines and an exclusive portion of the residence dedicated solely for business activities.

• Commuting To Work

Commuting expenses incurred while travelling to and from work regularly are usually not eligible for mileage rate or tax-free vehicle allowance benefits under the CRA.

However, Canadian taxpayers can claim certain commuting expenses for business activities associated with their job or profession that require them to travel and attend industry events or other such engagements away from their workplace.

To be eligible, the primary purpose of this travel must be generating income by performing duties related to your job/profession rather than commuting between home and work.

LEARN MORE: How to Find the Best Tax Accountant Near Me

Mileage Reimbursement Implications

Tax implications.

In Canada, tax deductions are available to businesses for business travel expenses, including mileage and car allowances. Mileage allowance paid to employees or officers is treated as a taxable benefit subject to the employer’s income tax withholding at source.

If an employee is provided with the use of a company car, this will be presented as part of their salary, and taxes will be deducted accordingly. For employers, eligible expenditure on providing car allowances to employees may also qualify for input tax credits if applicable according to prevailing rules in each province or territory.

Accurate tracking and record-keeping are essential when claiming CRA mileage rates and tax-free vehicle allowances for business travel. Recent changes have been implemented regarding the supporting documentation that employers must keep to claim certain deductions from their business’s income taxes relating to these types of expenses (e.g., a detailed log that includes the date of travel, route taken, and distance travelled).

If you need clarification about the tax implications, you can always consult a tax accountant who can help you with personal and corporate tax matters.

External Influences

• Economic Conditions : Rates might be adjusted to align with prevailing economic conditions.
• Cost of Fuel: Fluctuations in fuel prices may cause the allowance rate to increase or decrease.
• Inflation Rates: General inflation can affect the cost of vehicle maintenance, repairs, insurance, and other related expenses. CRA might adjust the mileage allowance accordingly.
• Policy Changes: Any new regulations regarding business expenses and reimbursements might necessitate changes to the allowance.
• Technological Advancements: The increase in electric and hybrid vehicles can affect the per-kilometre cost calculation regarding vehicle expenses, which could potentially impact the CRA mileage allowance.

3 Tips For Managing Business Travel Expenses and Mileage Tracking

– Provide clear guidelines for employees to follow when tracking and recording business travel expenses, such as keeping detailed records and utilizing technology.

1. Keep Detailed Records

Keeping detailed records of business travel expenses is essential for Canadian taxpayers. It helps to accurately calculate CRA mileage rates and tax-free vehicle allowances and avoid potential issues during an audit from the Canada Revenue Agency (CRA). Taxpayers need to keep records such as:

• Gas receipts

• Oil changes

• Car maintenance & repair costs

• Insurance payments

• Any other related out-of-pocket expenses

By keeping these mileage records, Canadian taxpayers can easily track their business travel expenses and ensure everything is accounted for correctly. Further, it provides evidence that any vehicle deductions are legitimate, so there are no problems or additional costs associated with CRA audits. Technology can also help Canadians monitor their spending by using various automatic mileage tracking tools, such as Driversnote’s expense reimbursement system and tracking tool – perfect for managing business trips abroad or just around town!

2. Use Technology To Track Vehicle Expenses

Technology can be a valuable tool for managing business travel expenses associated with CRA mileage rates and tax-free vehicle allowances. Mileage tracking apps and other tools can enable accurate record-keeping and precise calculations, which can help taxpayers claim total tax deductions. Keeping a detailed log of trips is still necessary, but using technology reduces the need for manual tracking of odometer readings while adding convenience.

Examples of mileage tracking apps include TripLog , MileIQ , QuickBooks Self Employed , etc. Additionally, businesses may install GPS units on employee vehicles to keep track of automobile-related expenses for various purposes, including deduction claims at year-end taxes or providing client billing information when required.

Using these apps or tools can make managing business travel expenses in different locations within Canada easier by automatically tracking all drives based on time spent driving as per kilometre rate set by the CRA standard mileage allowance (SMA). It saves time to manually enter odometer readings every time an individual travels between two points, ensuring that no detail remains unaccounted during tax filing or claiming expenditures from bosses/employers, respectively.

DISCOVER: Free Resources

3. Reimburse Employees Promptly

Employers must ensure that employees are reimbursed promptly and accurately for travel expenses on business trips to avoid any potential complications or legal ramifications.

Promptly reimbursing employees helps maintain employee morale and makes them feel empowered and valued, primarily if the employer guides them in navigating the expense system. Hence, they know exactly what to do when their reimbursements will be delivered and why it’s crucial.

According to Canadian tax laws, employers who provide an automobile allowance must maintain documents clearly outlining this arrangement and documenting all claims made by employees against it via an expense reimbursement form.

Furthermore, failure to automate the process in some way may lead to delays with repayment — another aspect that should be addressed in such arrangements.

• Understanding Provincial/Territorial Allowances and Mileage Rates in Canada

Canadian taxpayers are responsible for understanding the differences between federal and provincial/territorial allowances when claiming expenses related to business travel.

The CRA has a standard mileage rate of $0.70 per kilometre for the first 5,000 kilometres driven each year; however, some provinces or territories might have additional tax-free vehicle allowance amounts based on their accommodations, cost of living or other particular circumstances that could increase the amount an individual can claim up from CRA’s base rate.

CRA Mileage Rate 2024 Conclusion

As business travel can be complicated and expensive, understanding the CRA mileage rates and tax-free vehicle allowances is essential. Following the rules prescribed by the Canada Revenue Agency (CRA) can save time, money, and energy when preparing your taxes.

The key takeaway from this article is to keep records of all your travels—including destinations, distances travelled, and dates—and submit accurate expense reports for CRA mileage reimbursement or claim for a business vehicle allowance as per eligible criteria as soon as possible.

Common questions related to CRA Mileage Rates this 2024 And Tax-Free Vehicle Allowances For Business Travel relate to eligibility criteria for claiming deductions on taxes relating to business trips; applicability of different rates in various provinces/territories; use of technology tools for tracking expenses; etc., all of which have been addressed throughout this article.

It’s also essential to remember that expenses must adhere to guidelines set forth by the Canada Revenue Agency’s prescriptions for deductions to apply on personal income tax filings.

1. What are the CRA mileage rates for business travel?

The Canada Revenue Agency (CRA) sets a mileage rate for business travel for automobile and bicycle use. Currently, the kilometric rate is set at $0.70/km (2024)for taxis, cars or vans leased or owned by employees.

2. How do you calculate vehicle allowances provided by employers through CRA?

To calculate vehicle allowance amounts provided by employers using the CRA mileage rate, multiply an employee’s total business kilometres driven during a given tax year with the corresponding kilometric rate of ($0.70 per km 2024 for the first 5,000km and $0.64 thereafter). This amount should be included in Box 14 on their T4 slip from the employer to declare it as income when filing taxes every year unless the allowance meets certain criteria and is considered “reasonable.”

3 . Are car expenses covered under my prescribed mileage rates allowance?

Yes – once you met CRA’s conditions, reimbursed car expenses such as insurance costs and eligible lease payments are intended to be covered by your prescribed mileage rates allowance according to CRA guidelines.

Are you looking for assistance with your personal or corporate taxes? Look no further than CPA Guide. Our network of top accountants and accounting firms in Canada will help you find the best CPA to suit your needs. Get started today with CPA Guide .

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Per diem rates in Canada: a brief guide (2024)

What are per diem rates for business travel, do businesses have to use per diem rates, what are the most important things to know about per diem allowances in canada, reductions in allowances for extended trips.

• After 30 days, employees will only receive 75% of the usual allowance for meals and incidental expenses.
• After 120 days, they will only receive 50% of the meal allowance.

Rules on qualifying for per diem allowances

What expenses are covered by per diem rates for canada.

• Meals purchased during business trips (breakfast, lunch, and dinner)
• Incidental expenses 
• Transportation allowances for weekend travel to and from home
• Private non-commercial accommodation
• Kilometric rates for the use of privately owned vehicles driven on business travel

What expenses aren’t covered by per diem rates for Canada?

• Overnight accommodation at commercial lodgings

How are per diem rates in Canada calculated for travel within Canada and the USA?

Per diem rates for meals, transportation, accommodation, incidentals, and the use of private vehicles during trips within canada and the usa, meal allowances ($), transportation allowances for weekend travel to and from home ($), per diem rates for trips within canada and the usa: a quick example.

• Total allowance for Monday, Tuesday, and Wednesday: $111.95 meal allowance + $17.50 incidental expenses allowance + $50.00 accommodation allowance = $538.35
• Total allowance for Thursday: $111.95 meal allowance + $17.50 incidental expenses allowance = $129.45

Are there different guidelines for accommodation and meal allowances when employees travel internationally?

Are the per diem rates different in some of the key canadian cities.

Maximize your travel budget. Save time and money on your next trip.

Getting to grips with per diem rates in canada, frequently asked questions, are per diems tax-free in canada, are the per diem rates for ottawa, canada different to other provinces, are there location-dependent exceptions to the per diem rates, how can i manage per diem rates alongside my expense claims.

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Directive on travel - Appendix

On this page, appendix a - cra kilometric rates, appendix b - meals and allowances, appendix c - daily meal rates at locations abroad, appendix a - application of residence rule - normal mode of commute is the privately owned vehicle, appendix b - cra kilometric rates, appendix c - meals and allowances, appendix d - daily meal rates at locations abroad, appendix e - summary of insurance coverage for employees on cra business travel, current appendices.

• Effective July 1, 2024
• Effective April 1, 2024
• Effective January 1, 2024
• Effective October 1, 2023
• Effective July 1, 2023
• Effective April 1, 2023
• Effective January 1, 2023
• Effective October 1, 2022
• Effective July 1, 2022
• Effective April 1, 2022
• Effective January 1, 2022
• Effective October 1, 2021
• Effective July 1, 2021
• Effective April 1, 2021
• Effective January 1, 2021
• Effective October 1, 2020
• Effective July 1, 2020
• Effective April 1, 2020

Archived appendices

• Application of Residence Rule - Normal Mode of Commute is the Privately Owned Vehicle - Effective July 3, 2007
• CRA Kilometric Rates - Effective January 1, 2020
• CRA Kilometric Rates - Effective October 1, 2019
• CRA Kilometric Rates - Effective July 1, 2019
• CRA Kilometric Rates - Effective April 1, 2019
• CRA Kilometric Rates - Effective January 1, 2019
• CRA Kilometric Rates - Effective October 1, 2018
• CRA Kilometric Rates - Effective July 1, 2018
• CRA Kilometric Rates - Effective April 1, 2018
• CRA Kilometric Rates - Effective January 1, 2018
• CRA Kilometric Rates - Effective October 1, 2017
• CRA Kilometric Rates - Effective July 1, 2017
• CRA Kilometric Rates - Effective April 1, 2017
• CRA Kilometric Rates - Effective January 1, 2017
• CRA Kilometric Rates - Effective October 1, 2016
• CRA Kilometric Rates - Effective July 1, 2016
• CRA Kilometric Rates - Effective April 1, 2016
• CRA Kilometric Rates - Effective January 1, 2016
• CRA Kilometric Rates - Effective October 1, 2015
• CRA Kilometric Rates - Effective April 1, 2015
• CRA Kilometric Rates - Effective January 1, 2015
• CRA Kilometric Rates - Effective October 1, 2014
• CRA Kilometric Rates - Effective July 1, 2014
• CRA Kilometric Rates - Effective April 1, 2014
• CRA Kilometric Rates - Effective October 1, 2013
• CRA Kilometric Rates - Effective July 1, 2013
• CRA Kilometric Rates - Effective April 1, 2013
• CRA Kilometric Rates - Effective January 1, 2013
• CRA Kilometric Rates - Effective October 1, 2012
• CRA Kilometric Rates - Effective July 1, 2012
• CRA Kilometric Rates - Effective April1, 2012
• CRA Kilometric Rates - Effective January 1, 2012
• CRA Kilometric Rates - Effective October 1, 2011
• CRA Kilometric Rates - Effective July 1, 2011
• CRA Kilometric Rates - Effective April 1, 2011
• CRA Kilometric Rates - Effective January 1, 2011
• CRA Kilometric Rates - Effective October 1, 2010
• CRA Kilometric Rates - Effective July 1, 2010
• CRA Kilometric Rates - Effective April 1, 2010
• CRA Kilometric Rates - Effective January 1, 2010
• CRA Kilometric Rates - Effective October 1, 2009
• CRA Kilometric Rates - Effective July 1, 2009
• CRA Kilometric Rates - Effective April 1, 2009
• CRA Kilometric Rates - Effective January 1, 2009
• CRA Kilometric Rates - Effective October 1, 2008
• CRA Kilometric Rates - Effective July 1, 2008
• CRA Kilometric Rates - Effective April 1, 2008
• CRA Kilometric Rates - Effective January 1, 2008
• CRA Kilometric Rates - Effective October 1, 2007
• CRA Kilometric Rates - Effective July 1, 2007
• CRA Kilometric Rates - Effective April 1, 2007
• CRA Kilometric Rates - Effective February 10, 2007
• CRA Kilometric Rates - Effective September 1, 2006
• CRA Kilometric Rates - Effective December 5, 2005
• CRA Kilometric Rates - Effective October 1, 2005
• CRA Kilometric Rates - Effective April 1, 2005
• CRA Kilometric Rates - Effective July 1, 2004
• CRA Kilometric Rates - Effective April 1, 2003
• Meals and Allowances - Effective October 1, 2019
• Meals and Allowances - Effective April 1, 2019
• Meals and Allowances - Effective October 1, 2018
• Meals and Allowances - Effective April 1, 2018
• Meals and Allowances - Effective October 1, 2017
• Meals and Allowances - Effective April 1, 2017
• Meals and Allowances - Effective October 1, 2016
• Meals and Allowances - Effective April 1, 2016
• Meals and Allowances - Effective October 1, 2015
• Meals and Allowances - Effective April 1, 2015
• Meals and Allowances - Effective October 1, 2014
• Meals and Allowances - Effective April 1, 2014
• Meals and Allowances - Effective October 1, 2013
• Meals and Allowances - Effective April 1, 2013
• Meals and Allowances - Effective October 1, 2012
• Meals and Allowances - Effective April 1, 2012
• Meals and Allowances - Effective October 1, 2011
• Meals and Allowances - Effective April 1, 2011
• Meals and Allowances - Effective October 1, 2010
• Meals and Allowances - Effective April 1, 2010
• Meals and Allowances - Effective October 1, 2009
• Meals and Allowances - Effective April 1st, 2009
• Meals and Allowances - Effective October 1st, 2008
• Meals and Allowances - Effective April 1st, 2008
• Meals and Allowances - Effective October 1st, 2007
• Meals and Allowances - Effective April 1st, 2007
• Meals and Allowances - Effective April 1st, 2006
• Meals and Allowances - Effective October 1st, 2005
• Meals and Allowances - Effective April 1st, 2005
• Meals and Allowances - Effective October 1st, 2004
• Meals and Allowances - Effective January 1st, 2004
• Meals and Allowances - Effective October 1st, 2003
• Daily Meal Rates at Locations Abroad - Effective January 1, 2020
• Daily Meal Rates at Locations Abroad - Effective October 1, 2019
• Daily Meal Rates at Locations Abroad - Effective July 1, 2019
• Daily Meal Rates at Locations Abroad - Effective April 1, 2019
• Daily Meal Rates at Locations Abroad - Effective January 1, 2019
• Daily Meal Rates at Locations Abroad - Effective Octobre 1, 2018
• Daily Meal Rates at Locations Abroad - Effective July 1, 2018
• Daily Meal Rates at Locations Abroad - Effective April 1, 2018
• Daily Meal Rates at Locations Abroad - Effective January 1, 2018
• Daily Meal Rates at Locations Abroad - Effective October 1, 2017
• Daily Meal Rates at Locations Abroad - Effective July 1, 2017
• Daily Meal Rates at Locations Abroad - Effective April 1, 2017
• Daily Meal Rates at Locations Abroad - Effective January 1, 2017
• Daily Meal Rates at Locations Abroad - Effective October 1, 2016
• Daily Meal Rates at Locations Abroad - Effective July 1, 2016
• Daily Meal Rates at Locations Abroad - Effective April 1, 2016
• Daily Meal Rates at Locations Abroad - Effective January 1, 2016
• Daily Meal Rates at Locations Abroad - Effective October 1, 2015
• Daily Meal Rates at Locations Abroad - Effective April 1, 2015
• Daily Meal Rates at Locations Abroad - Effective October 1, 2014
• Daily Meal Rates at Locations Abroad - Effective July 1, 2014
• Daily Meal Rates at Locations Abroad - Effective April 1, 2014
• Daily Meal Rates at Locations Abroad - Effective October 1, 2013
• Daily Meal Rates at Locations Abroad - Effective July 1, 2013
• Daily Meal Rates at Locations Abroad - Effective April 1, 2013
• Daily Meal Rates at Locations Abroad - Effective January 1, 2013
• Daily Meal Rates at Locations Abroad - Effective October 1, 2012
• Daily Meal Rates at Locations Abroad - Effective July 1, 2012
• Daily Meal Rates at Locations Abroad - Effective April 1, 2012
• Daily Meal Rates at Locations Abroad - Effective January 1, 2012
• Daily Meal Rates at Locations Abroad - Effective October 1, 2011
• Daily Meal Rates at Locations Abroad - Effective July 1, 2011
• Daily Meal Rates at Locations Abroad - Effective April 1, 2011
• Daily Meal Rates at Locations Abroad - Effective January 1, 2011
• Daily Meal Rates at Locations Abroad - Effective October 1, 2010
• Daily Meal Rates at Locations Abroad - Effective July 1, 2010
• Daily Meal Rates at Locations Abroad - Effective April 1, 2010
• Daily Meal Rates at Locations Abroad - Effective January 1, 2010
• Daily Meal Rates at Locations Abroad - Effective October 1, 2009
• Daily Meal Rates at Locations Abroad - Effective July 1, 2009
• Daily Meal Rates at Locations Abroad - Effective April 1, 2009
• Daily Meal Rates at Locations Abroad - Effective January 1, 2009
• Daily Meal Rates at Locations Abroad - Effective October 1, 2008
• Daily Meal Rates at Locations Abroad - Effective July 1, 2008
• Daily Meal Rates at Locations Abroad - Effective April 1, 2008
• Daily Meal Rates at Locations Abroad - Effective January 1, 2008
• Daily Meal Rates at Locations Abroad - Effective October 1, 2007
• Daily Meal Rates at Locations Abroad - Effective October 1, 2006
• Daily Meal Rates at Locations Abroad - Effective July 1, 2006
• Daily Meal Rates at Locations Abroad - Effective April 1, 2006 (PDF)
• Daily Meal Rates at Locations Abroad - Effective January 1, 2006 (PDF)
• Daily Meal Rates at Locations Abroad - Effective October 1, 2005
• Daily Meal Rates at Locations Abroad - Effective July 1, 2005
• Daily Meal Rates at Locations Abroad - Effective April 1, 2005
• Daily Meal Rates at Locations Abroad - Effective January 1, 2005
• Daily Meal Rates at Locations Abroad - Effective April 1, 2004
• Daily Meal Rates at Locations Abroad - Effective January 1, 2004
• Daily Meal Rates at Locations Abroad - Effective October 1, 2003
• Guide to Insurance Coverage for Employees on CCRA Business Travel - Effective April 1, 2005
• Summary of Insurance Coverage for Employees on CCRA Business Travel - Effective October 1, 2002

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Travel advice and advisories by destination

COVID-19: travel health notice for all travellers

The Government of Canada’s official source of travel information and advice, the Travel Advice and Advisories help you to make informed decisions and travel safely while you are outside Canada. Check the page for your destination often, because safety and security conditions may change. See Travel Advice and Advisories – FAQ for more information.

Where are you going?

Take normal security precautions

Exercise a high degree of caution

Avoid non-essential travel

Avoid all travel

Travel advice from other countries

Travel advice is also provided by the governments of Australia , New Zealand , the United Kingdom and the United States .

Risk Levels

  take normal security precautions.

Take similar precautions to those you would take in Canada.

  Exercise a high degree of caution

There are certain safety and security concerns or the situation could change quickly. Be very cautious at all times, monitor local media and follow the instructions of local authorities.

IMPORTANT: The two levels below are official Government of Canada Travel Advisories and are issued when the safety and security of Canadians travelling or living in the country or region may be at risk.

  Avoid non-essential travel

Your safety and security could be at risk. You should think about your need to travel to this country, territory or region based on family or business requirements, knowledge of or familiarity with the region, and other factors. If you are already there, think about whether you really need to be there. If you do not need to be there, you should think about leaving.

  Avoid all travel

You should not travel to this country, territory or region. Your personal safety and security are at great risk. If you are already there, you should think about leaving if it is safe to do so.