Due to the particular context of the COVID-19 pandemic, the Quebec government is announcing relaxations to the criteria normally applied to calculate the value of taxable benefits attributed to an employee for the use of an automobile for the 2020 and 2021 taxation years.
Indeed, due to the health crisis, some employees have had to reduce the number of kilometers traveled in the course of their duties in 2020, compared with a normal year, which could affect the calculation of these taxable benefits and generate an unexpected balance of tax payable.
The proposed relaxations will allow employers to consider the level of employee use of the automobile observed in 2019 to determine whether it is used primarily in the performance of duties, and thus more appropriately establish the level of taxable benefits for 2020 and 2021. The government is also taking this opportunity to publish the limits and rates that will govern automobile use for 2021.
Related link:
The terms and conditions related to these relaxations, as well as the limits and rates governing automobile use in 2021, can be found in Information Bulletin 2020-16 published by the Ministère des Finances and available at the following address:
http://www.finances.gouv.qc.ca/documents/Bulletins/fr/BULFR_2020-16-f-b.pdf.
