2006-04-12 Introduction of tax relief for employee transit passes

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Home > Information Center > All news > 2006 > 2006-04-12 Introduction of tax relief for employee transit passes

Summary

2006

Introduction of tax relief for employee transit passes

To help reduce greenhouse gas emissions and promote sustainable development, the government of Québec has introduced two fiscal measures designed to encourage employees to use mass transit for commuting to and from their place of work.

Under the first of these measures, employers that reimburse their employees for the cost of a mass transit pass or that provide such a pass to their employees are entitled to deduct, in calculating their income from a business, an additional amount equal to 100% of the expense already so deductible.

Briefly defined, a "mass transit pass" is a pass enabling passengers to use a public transport service provided by a public entity authorized by law to organize such a service. In certain cases, a mass transit pass may involve a monthly subscription.

Under the second of these measures, employees will not be required to include in their income, as a taxable benefit, the amount reimbursed by the employer for a mass transit pass (or the value of a pass provided by the employer) if the pass is purchased for the purpose of commuting between the employees' usual place of residence and their place of work.

Mass transit pass

A "mass transit pass" is

an eligible transit pass, that is, a transit pass enabling passengers to use a mass transport service, other than a paratransport service, provided by a public authority authorized by law to organize such a service
an eligible paratransit pass, that is, a transit pass enabling passengers to use a paratransport service provided by a public authority authorized by law to organize such a service

A transit pass is considered a subscription-type pass only if it provides for a subscription for a period of at least one month.

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