With the new year comes new rates, and in this blog I'll be talking about a few different vehicle rates that have changed for 2022 in Canada.

The first is the kilometer charge. So, if your corporation uses your personal vehicle - a vehicle that is not already capitalized in your corporation - you can claim 61¢ for every kilometer that you drive up to 5,000 kilometers, and then 55¢ for every kilometer after that.

That's an increase of two cents over the previous rates - 59 and 53 - which is a huge advantage, especially if you put on a lot of kilometers.

This covers your gas, your insurance, your repairs and maintenance, anything that goes into your personal vehicle, and the portion that you use for your business purposes. Just like usual, it is important to keep a log book. That rule has not changed and will never change. In fact, the Canadian Revenue Agency is getting stickier on the log book and what you're actually claiming. This is one of their new "projects". 

The other rate that has increased is the amount that is allowable for a class 10.1 asset. A class 10.1 asset is a passenger vehicle, a vehicle that is used primarily to transport people. The old maximum was $30,000 if you were registered for GST. If you were not registered for GST, then it was $31,500.

The new rate is $34,000 if you are registered for GST. If you are not registered for GST, it would be $35,700.

Make sure you know those rates. Your accountant hopefully knows those rate changes, so you can save the most amount of taxes possible.