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Hello Alan,
I work in UAE and I am considered tax resident in Canada as my family is living in Canada.My question is, if I am receiving a fixed monthly transportation allowance from my employer in UAE and I am reporting this amount as part of my taxable income with the salary, can I in such case deduct any transportation costs as "employment expenses", moreover, if I buy a car can I deduct the capital cost (depreciation value) as an employment expenses, taking into account that my work commute is fixed to one location during the year with occasional commute to another city that is 150 Km away from my office.
Thanks a lot
The transportation allowance is taxable to you. You can deduct vehicle expenses, including capital cost allowance, so long as you are required by contract to use your vehicle to carry out your duties of employment. The employment portion can be deducted, but your employer will need to sign form T2200, declaration of conditions of employment.