The Canada Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to any amounts owed to the CAR and to any amounts owed by the CRA to individuals and corporations. These rates will be in effect from July 1, 2025 to September 20, 2025.
Income Tax
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 7%.
- The interest rate to be paid on corporate taxpayer overpayments will be 3%.
- The interest rate to be paid on non-corporate taxpayer overpayments will be 5%.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans will be 3%.
- The Interest rate for corpate taxpayers’ pertinent loans or indebtedness will be 6.62%
The interest rates on overdue and overpaid remittances will be found in the link below.
For questions or concerns, please reach out to Chris Bodnar.