Revenue Canada Interest Rate

This page provides canada interest rate actual values historical data forecast chart statistics economic calendar and news.

Revenue canada interest rate. The interest rate to be paid on corporate taxpayer overpayments is 1. Currently the interest rate on overdue income taxes and penalties is 6. In case of individual taxpayer the rate is 3. Effective july 1 2010 there are four rate categories taxable benefits overpaid taxes corporate taxpayers overpaid taxes non corporate taxpayers and underpaid taxes.

The interest rate to be paid on corporate taxpayer overpayments will be 2. Again the 5 interest rate is charged on overdue taxes canada pension plan contributions and employment insurance premiums. Finally if you received interest on a tax refund from the cra you also have to report this as income. Recommends that taxpayers consult with a tax professional.

The canada revenue agency cra charges interest on instalment payments if you send your payment late or if the payment is less than the required amount and you receive a reminder notice that it hasn t been paid. The federal prescribed interest rates are adjusted quarterly by canada revenue agency. Similarly interest earned on canada savings bonds treasury bills life insurance policies foreign interest. Interest rate in canada averaged 5 86 percent from 1990 until 2020 reaching an all time high of 16 percent in february of 1991 and a record low of 0 25 percent in april of 2009.

The provided calculations do not constitute financial tax or legal advice. The only change is in the interest rate for corporate taxpayers pertinent loans or indebtedness which will decrease to 5 65 from 5 67 last quarter. The interest on these payments is compounded daily using the prescribed interest rate that is set every three months. This cra interest calculator can be used by tax attorneys accountants or cpas and individuals or businesses to provide estimates of cra interest on tax debt.

The canada revenue agency prescribed income tax interest rates for taxable benefits overpaid taxes and underpaid taxes will not change for the second quarter of 2020 1 april 2020 30 june 2020. If you receive over 50 of taxable interest or other investment income you will receive a t5 statement of investment income tax.