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The amount that you can deduct for a meal or entertainment expense for an employee varies depending on where the expense was incurred. The electronic search map available from this page can help you determine the amount you can deduct for these expenses.
Under the Income Tax Act, the deduction for a business-purpose meal or entertainment expense is generally limited to 50% of the lesser of a reasonable amount and the amount incurred. However, there are exceptions to this limit for work done at certain sites.
If a site is at least 30 kilometres from the boundary of the nearest urban area that has a population of at least 40,000 people, 100% of the meal and entertainment expenses incurred for duties at the site can be deducted as long as all the following conditions are met:
The expenses are not paid or payable for a conference, convention, seminar, or similar event.
The expenses are for an employee's business-purpose meals and entertainment expenses incurred at the work site.
The period of work at the site is temporary.
The employee must maintain a principal place of residence which was available for occupancy and was not rented by the employee to any other person.
Because of the distance, the employee could not reasonably be expected to return daily from the site to his or her principal residence.
To use the search map, enter the site where the expense was incurred. The search map will locate the site on a detailed map of the surrounding area, and will let you know how far it is from the boundary of the closest urban area.
Disclaimer
We have created this electronic search map for reference only. Although we try to ensure the information it contains is current and reliable, we do not guarantee its accuracy. As a result, we are not responsible for any loss, damage, error, or malfunction that may result from using information in this search map.
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Date modified:
2003-05-14
Top of page Important notices
Under the Income Tax Act, the deduction for a business-purpose meal or entertainment expense is generally limited to 50% of the lesser of a reasonable amount and the amount incurred. However, there are exceptions to this limit for work done at certain sites.
If a site is at least 30 kilometres from the boundary of the nearest urban area that has a population of at least 40,000 people, 100% of the meal and entertainment expenses incurred for duties at the site can be deducted as long as all the following conditions are met:
The expenses are not paid or payable for a conference, convention, seminar, or similar event.
The expenses are for an employee's business-purpose meals and entertainment expenses incurred at the work site.
The period of work at the site is temporary.
The employee must maintain a principal place of residence which was available for occupancy and was not rented by the employee to any other person.
Because of the distance, the employee could not reasonably be expected to return daily from the site to his or her principal residence.
To use the search map, enter the site where the expense was incurred. The search map will locate the site on a detailed map of the surrounding area, and will let you know how far it is from the boundary of the closest urban area.
Disclaimer
We have created this electronic search map for reference only. Although we try to ensure the information it contains is current and reliable, we do not guarantee its accuracy. As a result, we are not responsible for any loss, damage, error, or malfunction that may result from using information in this search map.
--------------------------------------------------------------------------------
Date modified:
2003-05-14
Top of page Important notices
Find the search map here:
http://www.cra-arc.g...earchmap-e.html
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