The Québec Ministry of Finance has announced the automobile expense deduction limits and prescribed rates for automobile operating expense benefits that apply for the 2022 taxation year. Based on the principle of substantial harmonization between Québec and federal tax legislation, the province has announced that it will adopt the 2022 rates and limits put in place by the federal Department of Finance on December 23, 2021. Specifically, as of January 1, 2022, the rates in effect are as follows:
Please note that the applicable lease limit is determined by the year in which a lease is entered, rather than the year in which lease payments are made. As an example, for a lease entered before January 1, 2022, the allowable monthly lease limit remains $800 and the corresponding monthly maximum input tax refund would be $79.80 throughout the lease term.
The information bulletin may be accessed at: 2022 Automobile Limits