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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.