Professional Documents
Culture Documents
Standby charge
2% the cost of the automobile (GST/HST included) to the employer where the employer owns the
automobile the number of months the automobile is available to the employee in the year
OR
2/3 the annual lease payments (GST/HST included) (excluding any portion related to insurance) where the
employer leases the automobile
Reduction available to basic standby charge (If required to use auto for employment purposes and more than 50%
of distance traveled related to employment)
The reduction is calculated by applying a fraction to the base standby calculation. The fraction is calculated as A B.
A = the lesser of:
i.
Total personal kilometres driven; and
ii.
1,667 km per month in which the vehicle is available to the individual
B = 1,667 km per month in which the vehicle is available to the individual