The Minister of Finance has released the mileage reimbursement limits for 2024: The first 5000 km driven in the year is 70 cents and every kilometer thereafter is 64 cents.

What does this mean? The 70 cents per kilometer is the amount which an employer can pay to an employee to reimburse the employee for business travel using the employee’s car. If you are on a business trip and you drive 200 kilometers, you ask your employer to reimburse you for your costs. So, if this trip is within the first 5000 kilometers driven for work in the 2024 year, the reimbursement is 200km times 70 cents for a total of $140. This payment is received by the employee and is not taxable, as it is considered a reimbursement of expenses incurred to earn income. The employer can deduct the payment.

If your business is incorporated and you use your personal vehicle for business travel, then you use these rates to reimburse yourself. This is what I do. I find it far easier to be reimbursed by one of my companies, than it is to keep all the gas receipts, etc. for the whole year and figure out how much I can deduct on my personal tax return. I have joked that being able to reimburse myself by kilometer is a good reason to incorporate a business.

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