Remitting GST/HST on Taxable Benefits

Did you know that GST/HST must be remitted on a taxable benefit unless the benefit is tax exempt or zero-rated, for example the benefit on low-interest loans? An example of a tax benefit that is not exempt includes the automobile standby charge and operating expense benefit. ST/HST must be remitted on shareholder benefits if they fall into Subsection 15(1) and are not tax zero-rated or tax exempt. The amount of GST to be remitted for taxable benefits is 4/104 of the benefit amount or 12/112 of the benefit amount for HST participating provinces.  axable benefits for automobile operating expenses are taxed at 3% of the benefit amount or 9% for HST participating provinces. Non-taxable allowances based on kilometres driven are eligible for the GST/HST input tax credits (ITC) claimed by the payor. The ITC is equal to 5/105 (GST) or 3/113 (HST) times the allowance.

Leave a Reply

Your email address will not be published. Required fields are marked *