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

 

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