Dwelling Located in a Designated Remote Area (Prescribed Zone)
A dwelling located in a designated remote area (i.e. a prescribed zone) that you rent for an employee constitutes a taxable benefit for the employee.
To calculate the value of the benefit, refer to publication RC4054, Ceiling Amounts for Housing Benefits Paid in Prescribed Zones, on the Government of Canada website.
Include the value of the benefit in boxes A and V and in box G or box I of the employee's RL-1 slip (see courtesy translation RL-1-T). See Benefit Provided to an Employee to find out how a benefit in kind should be treated.
An employee who lives in a prescribed northern zone or a prescribed intermediate zone for a period of at least six consecutive months beginning and ending in the year can request a reduction in source deductions of income tax by claiming the housing deduction in form TP-1015.3-V, Source Deductions Return.