Nearly all rates increase by 1 per cent
The Canada Revenue Agency (CRA) has announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts it owes to individuals and corporations.
These rates are calculated quarterly in accordance with applicable legislation and will be in effect from Oct. 1 to Dec. 31. All interest rates have increased by one percentage point since last quarter, except for the rate for corporate taxpayers pertaining to interest on loans and indebtedness.
Income tax
• The interest rate charged on overdue taxes, Canada Pension Plan (CPP) contributions, and employment insurance premiums will be six per cent.
• The interest rate to be paid on corporate taxpayers overpayments will be two per cent.
• The interest rate to be paid on non-corporate taxpayers overpayments will be four per cent.
The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be two per cent.
• The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02 per cent.
Other taxes, duties, or charges
The interest rates on overdue and overpaid remittances are as follows:
|
Tax, duty, or other charges |
Overdue remittances |
Overpaid remittances – Corporate taxpayers |
Overpaid remittances – Non-corporate taxpayers |
|
Goods and Services Tax (GST) |
Six per cent |
Two per cent |
Four per cent |
|
Harmonized Sales Tax (HST) |
Six per cent |
Two per cent |
Four per cent |
|
Air travelers’ security charge |
Six per cent |
Two per cent |
Four per cent |
|
Excise tax (non GST/HST) |
Six per cent |
Two per cent |
Four per cent |
|
Excise duty except brewer licensees (amounts payable after June 30, 2003) |
Six per cent |
Two per cent |
Four per cent |
|
Excise duty except brewer licensees (amounts payable before July 1, 2003) |
Four per cent |
N/A |
N/A |
|
Excise duty (brewer licensees) |
Four per cent |
N/A |
N/A |
|
Softwood lumber products export charge |
Six per cent |
Two per cent |
Four per cent |
