Interest rates that apply for tax purposes were announced for the fourth quarter of 2020.
The Canada Revenue Agency (CRA) announced that the prescribed income tax interest rate for taxable benefits, overpaid taxes, and underpaid taxes will remain unchanged at 1% for the fourth quarter of 2020 (1 October 2020 – 31 December 2020). Read an August 2020 report prepared by the KPMG member firm in Canada
It is estimated that the quarterly rate of interest used to determine the deemed interest income inclusion from a pertinent loan or indebtedness (PLOI) will decrease slightly to 4.18% (from 4.27%) for 1 October 2020 to 31 December 2020. This rate is generally the average yield of 90-day Treasury bills sold by the Government of Canada during the first month of the preceding quarter (rounded to two decimal places) plus 4%. Read an August 2020 report [PDF 290 KB] prepared by the KPMG member firm in Canada
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