What can Canada businesses claim as expenses?

Generally fully deductible for Canadian and digital advertising. Foreign advertising directed at the Canadian market is only 50% deductible under Section 19 of the Income Tax Act. This restriction applies to advertising in foreign newspapers, magazines, and broadcasts (including foreign cable TV) that are directed at a Canadian audience.

Business insurance premiums are generally fully deductible: commercial liability, property, professional indemnity (E&O), and business interruption insurance. Key-person life insurance may be deductible if the company is the beneficiary and the policy is required by a lender. Personal life insurance premiums are generally not deductible, even when used as loan security.

Fully deductible for genuine business travel. Airfare, accommodation, and ground transportation are deductible at 100%. Meals while travelling are subject to the 50% limitation. CRA per diem rates for meals in 2025 are CAD 23 (breakfast), CAD 28 (lunch), and CAD 51 (dinner). Personal days on a business trip must be excluded.

Yes, deductible via Capital Cost Allowance (CCA). Computers and office equipment fall into Class 8 at a 20% declining balance rate. The half-year rule limits the first-year deduction to 50% of normal CCA. Immediate expensing for CCPCs (up to CAD 1.5M) was available through to end of 2024 - check current CRA guidance for the latest status.

Partially deductible. Employees need a signed T2200 from their employer and can claim only the detailed method (actual costs proportioned to workspace). Self-employed individuals use Form T2125 and may claim rent or mortgage interest, utilities, and maintenance for the portion of the home used exclusively and regularly for business.

Yes, interest on money borrowed to earn business income is fully deductible under Section 20(1)(c) of the Income Tax Act. Bank charges, loan origination fees, and financing costs are also deductible. The interest must be paid or payable in the year. Thin-capitalisation rules (1.5:1 debt-to-equity) may restrict interest deductions for non-arm's length foreign lenders.

50% deductible for meals and entertainment incurred for business purposes. Receipts and business purpose must be documented. Exceptions allow 100% deduction for certain employee events (up to 6 per year), meals at remote work sites with shift restrictions, and meals included in a conference fee.

Partially deductible based on business-use percentage. You can claim actual costs (fuel, insurance, maintenance, CCA) multiplied by the business proportion, or use CRA's per-kilometre rates (70 cents/km for the first 5,000 km of business travel, 64 cents/km after, for 2025). Passenger vehicles over CAD 36,000 have a CCA cost cap.

Yes, professional fees paid to accountants, lawyers, consultants, and advisors for advice related to earning business income are fully deductible. Legal fees for capital transactions (incorporation, share purchases, property acquisitions) are not deductible as expenses but are added to the adjusted cost base (ACB) of the asset.

Fully deductible. Salaries, wages, bonuses, and reasonable allowances paid to employees for services rendered are deductible business expenses. The employer's share of CPP (5.95%) and EI (2.296%) are also deductible. Salaries paid to family members are deductible only if they are reasonable for the services performed.