Principal Changes – Taxable Benefits Granted in 2021

Note
Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

End of note

These are the principal changes regarding taxable benefits granted in 2021.

Rates related to the use of an automobile

Allowance for the use of a motor vehicle

For 2021, the per-kilometre rate that we generally consider reasonable is $0.59 for the first 5,000 kilometres and $0.53 for each additional kilometre.

Operating-costs benefit related to an automobile made available to an employee

For 2021, the per-kilometre rate for the personal use of an automobile is $0.24 if the employee is engaged principally in selling or leasing automobiles. In all other cases, it is $0.27.

Temporary rules for calculating the benefit related to an automobile

In the context of COVID-19, an employee who used an automobile more than 50% of the time in the performance of their duties in 2019 is also considered to have used the automobile more than 50% of the time in the performance of their duties in 2020 and 2021, if the automobile is provided by the same employer as in 2019.

Accordingly, when you calculate the value of the benefit related to an automobile for 2020 and 2021, you can apply the reduction of the value of the standby charge and use the simplified method to determine the value of the operating-costs benefit (regardless of whether the employee informed you in writing before the end of the year of their intention to use the simplified method).

The value of the benefit related to an automobile must be calculated using the information for the 2020 and 2021 taxation years.

Lodging and meals provided to a hotel or restaurant employee

Meals

For 2021, the maximum price for calculating the value of the benefit related to meals provided to a hotel or restaurant employee is $9.26. For 2022, it is $9.49.

Lodging

For 2021, the maximum weekly price for calculating the value of the benefit related to lodging provided to a hotel or restaurant employee is $52.25. For 2022, it is $53.00.

Low-interest loans

The table below provides the prescribed interest rates for 2021 for calculating the value of the benefit related to a low-interest loan granted to an employee or a shareholder.

Period of the year Prescribed interest rate for 2021
1st quarter / January 1 to March 31 1%
2nd quarter / April 1 to June 30 1%
3rd quarter / July 1 to September 30 1%
4th quarter / October 1 to December 31 1%
Virtual currency

Virtual currency is considered to be property, not currency, because it is not legal tender in Canada. Transactions in which virtual currency is used as a method of payment or exchange are considered barter transactions.

If you use virtual currency to pay an employee, the payment is considered to be a benefit in kind. The value of the benefit is the fair market value of the virtual currency, in Canadian dollars, at the time of payment.

You have to include the value of this benefit in boxes A and L of the employee's RL-1 slip and may also have to include it in box G.

For more information about virtual currency transactions, go to Virtual Currency.

New rules for security options

New rules came into effect on July 1, 2021, for security options granted to an employee of a corporation (other than a Canadian-controlled private corporation [CCPC]) or a mutual fund trust whose annual income is more than $500 million according to its financial statements (or its consolidated financial statements).

Under the new rules, the total value of security options that an employee can acquire in a year and that will be eligible for the security option deduction is limited to $200,000.

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