Benefit Related to an Automobile Made Available to an Employee
We consider that you make an automobile available to an employee where you entrust the automobile (This link will open a new window) to the care and control of the employee and authorize the employee to make personal use of the automobile or do not forbid such use.
There is no taxable benefit if the employee uses the automobile only for work, even if the vehicle is available to the employee throughout the year. A taxable benefit results if the employee uses the automobile for personal purposes (This link will open a new window), or if the automobile made available to the employee is not required for his or her job.
Source deductions and contributions
A benefit related to an automobile made available to an employee (or a person related to the employee) is subject to source deductions and employer contributions during the year. However, this benefit is not subject to Québec parental insurance plan (QPIP) premiums.
Calculation of the value of the benefit
The value of the benefit must be calculated over the course of the year and be based on estimates. You must therefore repeat the calculation at the end of the year, using the actual number of kilometres travelled during the year.
To calculate a benefit related to an automobile, use form TP-41.C-V, Calculation of an Automobile Benefit, or click Calculation of an Automobile Benefit. For sample calculations of benefits related to an automobile, see the guide Taxable Benefits (IN-253-V).