Canada: Prescribed rates of interest for income tax, PLOI purposes (fourth quarter 2021)
The prescribed interest rates for income tax and for pertinent loan or indebtedness purposes for the fourth quarter of 2021.
Prescribed rates of interest for income tax, PLOI purposes for the fourth quarter
The prescribed interest rates for income tax and for pertinent loan or indebtedness (PLOI) purposes for the fourth quarter of 2021 (1 October 2021 – 31 December 2021) reflect:
- No change to the prescribed income tax interest rate for taxable benefits, overpaid taxes, and underpaid taxes from the rate for the third quarter of 2021. The rate remains at 1%. Read an August 2021 report [PDF 263 KB] prepared by the KPMG member firm in Canada
- An increase to the prescribed interest quarterly rate that is used to determine the deemed interest income inclusion from a PLOI—the rate is estimated to increase to 4.17% (from 4.10%) for the fourth quarter of 2021. Read an August 2021 report [PDF 259 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.