Canada: Prescribed income tax interest rates unchanged (second quarter 2020)

Canada: Prescribed income tax interest rates unchanged

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).

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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).

Currently, the interest rate on overdue income taxes and penalties is 6%. The prescribed rate for refunds of overpaid tax is 4% for non-corporate taxpayers (2% for corporate taxpayers), and the prescribed rate that applies to taxable benefits for employees and shareholders from interest-free and low-interest loans is 2%.

Prescribed rates for 2019 and 2020 are as follows:

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Read a February 2020 report prepared by the KPMG member firm in Canada

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