UBC faculty and staff must be aware of taxable benefits arising from several of UBC's housing assistance programs.
Some program benefits are taxable
Some of UBC’s housing programs for faculty and staff are considered income due to the economic benefit provided by UBC through these programs.
UBC has determined that taxable benefits arise on the following housing assistance programs:
- Down payment assistance
- Faculty-staff restricted rental program (including rent-geared-to-income pilot program)
- Restricted faculty second mortgage loan (discontinued program)
- Mortgage interest assistance (discontinued program)
Canadian income tax law provides that any assistance provided or amount paid for or on behalf of an individual, in connection with their office or employment, for the acquisition or use of a residence, is a taxable employment benefit.
However, there's no taxable benefit to be reported to the CRA for the prescribed interest rate loan program, as UBC charges employee interest at the CRA’s prescribed interest rate. A taxable benefit is earned only if the borrower pays interest at a rate lower than the prescribed annual interest rate.
For additional information, view The Government of Canada's Employers' Guide – Taxable Benefits and Allowances.
For questions on taxable benefits and housing programs, e-mail or call:
UBC urges all employees considering participation in one or more housing programs to consult their own tax and financial advisors. Please note that UBC can't provide any tax, financial, or legal advice to employees.