Canada MOF Announces 2022 Automobile Fringe Benefit Rates

The Canadian Department of Finance Dec. 23 announced 2022 income tax deduction limits and expense benefit rates for taxpayers using automobiles for business purposes. The announcement includes: 1) a capital cost allowance (CCA) ceiling increase for zero-emission passenger vehicles to C$59,000 (US$45,984) from C$55,000 (US$42,867), and a CCA increase for passenger vehicles to C$34,000 (US$26,439) from C$30,000 (US$23,382), for qualified vehicles acquired by Jan. 1, 2022; 2) an increase in deductible leasing costs to C$900 (US$701) from C$800 (US$623); 3) a general deduction limit increase for employer-paid allowances to C$0.61 (US$0.47) from C$0.59 (US$0.45) per kilometer for the first 5,000 ...