What are the travel and expense reimbursement regulations in Canada?
“Canadian T&E expense regulations are very similar to those in the United States. Businesses can deduct travel and meal costs as business expenses, while business travelers can also receive nontaxable allowances and reimbursements. According to the “”Employers Guide to Taxable Benefits and Allowances,”” provided a traveler submits an expense report documenting their traveling expenses, the reimbursement amount is not reportable as income. In addition, businesses are free to give employees a reasonable allowance when they are traveling. As long as the employee substantiates the expenses with receipts and returns any excess, the allowance is not reportable as income. Allowances are also called accountable advances. However, its important to note that travel allowances are reportable as income if the business traveler does not leave the municipality in which their business is located. For more on allowances, see the CRA allowances information page. The cost of meals can also be deducted.
