18(1)(r)Allowance for the use of an automobile

Q: how much can you deduct as business expense if you pay allowance to employee for using his/her car

A: no restriction if the allowance is required to be included in the employee's income Otherwise, 42c per km for the first 5000km and 36c per km for the km above 5000km if the use of the car is for business purpose.

 

The rate is revised periodically by CRA.