Share with your friends

Canada: Tax-related interest rates for fourth quarter 2020

Canada: Tax-related interest rates for fourth quarter

Interest rates that apply for tax purposes were announced for the fourth quarter of 2020.


Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal