As a rule, a parking space that you provide to an employee free of charge or at a price below the fair market value (FMV), or any reimbursement you make to the employee for the cost of a parking space at his or her usual workplace, is considered a taxable benefit. The value of the benefit corresponds to:
- the FMV of the parking space
- any amount you are reimbursed by the employee for its use
Include the value of the benefit in boxes A and L and in box G or box I of the employee's RL-1 slip (see courtesy translation RL-1-T).
This benefit is generally tax-exempt in the following circumstances:
- The employee has a severe and prolonged mobility impairment certified by a qualified health professional (see Benefits Provided to a Person With an Impairment).
- The parking space is provided mainly for your benefit, which is the case, for example, if:
- under the employment contract, most of the employee's duties are to be performed away from your establishment, to which the employee must nonetheless go from time to time to prepare reports;
- the employee's duties consist in transporting merchandise on a daily basis using a motor vehicle.
- The value of the benefit is difficult to quantify, as when:
- the parking space is an integral part of your establishment (or of a shopping centre in which your business is located) and parking is available free of charge for clients and employees;
- there are not enough parking spaces for all employees and the spaces available are used on a first-come, first-served basis.