Private use of employer-provided vehicles

Employees with low business kilometres

If your employee does not travel more than 24,000 kilometres annually, the cash equivalent calculated may be further reduced by 20%. To get this reduction, your employee must also:

  • work an average of at least 20 hours per week
  • travel at least 8,000 business kilometres annually
  • spend at least 70% of their working time away from the employers’ premises
  • and
  • retain a log book with details of business kilometres and work purposes.

Next: Employer-provided vehicles not available for the full year