Travel Policy Template for Canada

A Travel Policy sets clear rules for how employees can spend company money when traveling for work. It covers everything from booking flights and hotels to meal allowances and expense reporting, helping organizations control costs while keeping their teams safe and productive on the road.

Under Canadian tax laws, these policies play a crucial role in determining which expenses qualify as business-related and tax-deductible. A well-crafted policy ensures compliance with Canada Revenue Agency guidelines, protects both employer and employee interests, and creates consistent standards for business travel across the organization.

Use a Travel Policy when your organization starts sending employees on business trips, even if it's just occasional travel. This essential document becomes especially important as your team grows beyond 10 people or when travel expenses start exceeding $5,000 monthly. It helps prevent confusion about what expenses are covered and protects your company from unexpected costs.

Canadian businesses need Travel Policies before their first tax audit, as the CRA closely examines business travel claims. Having clear rules in place makes expense tracking simpler, speeds up reimbursements, and gives employees confidence about spending decisions while traveling for work. It's particularly vital when staff travel internationally or to remote locations.

• Basic Travel Policies outline standard rules for domestic business trips, including approval processes and spending limits
• Comprehensive International Travel Policies add coverage for foreign currency, insurance requirements, and cross-border tax implications
• Industry-Specific Policies adapt to unique needs - like remote site access for resource companies or conference guidelines for academic institutions
• Per-Diem Based Policies use fixed daily allowances, simplifying expense tracking and CRA compliance
• Flexible Travel Policies offer tiered guidelines based on employee seniority or travel frequency, common in consulting and sales organizations

• HR Managers: Create and maintain Travel Policies, ensuring they align with company culture and legal requirements
• Finance Teams: Oversee expense limits, reimbursement processes, and compliance with CRA guidelines
• Traveling Employees: Follow policy guidelines for booking, spending, and submitting expense claims
• Department Managers: Approve travel requests and expenses within their teams
• Legal Counsel: Review policies to ensure they meet regulatory requirements and protect company interests
• External Auditors: Verify compliance and proper documentation during financial reviews

• Business Assessment: Review your company's travel patterns, typical destinations, and expense volumes
• Budget Limits: Set clear spending caps for flights, hotels, meals, and incidentals based on location
• Approval Chain: Map out who authorizes travel requests and expense claims at each level
• Safety Guidelines: Include emergency contacts, insurance requirements, and high-risk destination protocols
• Payment Methods: Decide between corporate cards, reimbursements, or per-diem systems
• Documentation: List required receipts and forms that align with CRA requirements
• Legal Review: Use our platform to generate a compliant policy that covers all essential elements

• Policy Purpose: Clear statement of objectives and scope of covered business travel
• Expense Categories: Detailed breakdown of allowable expenses meeting CRA requirements
• Approval Process: Authorization procedures and spending limits by employee level
• Documentation Rules: Required receipts and reporting timeframes for tax compliance
• Safety Guidelines: Duty of care provisions and emergency procedures
• Reimbursement Terms: Payment methods and processing timelines
• Compliance Statement: References to relevant employment standards and tax regulations
• Policy Updates: Process for reviewing and modifying policy terms

A Travel Policy is often confused with an Expense Policy, but they serve distinct purposes. While both deal with company spending, their scope and application differ significantly.

• Coverage Scope: Travel Policies focus specifically on business trip guidelines, including transportation, accommodation, and travel-related safety protocols. Expense Policies cover all business spending, from office supplies to client entertainment.
• Risk Management: Travel Policies include duty of care provisions and emergency procedures for employees abroad, while Expense Policies concentrate on financial controls and approval processes.
• Tax Implications: Travel Policies align with CRA's specific requirements for business travel deductions, whereas Expense Policies address broader corporate spending documentation.
• Regulatory Focus: Travel Policies must comply with transportation safety and international travel regulations, while Expense Policies primarily deal with accounting standards and financial controls.