The Canada Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates will be in effect from October 1, 2014 to December 31, 2014.
These rates are calculated quarterly according to the laws that apply.
Income tax
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 5%.
- The interest rate to be paid on corporate taxpayer overpayments will be 1%.
- The interest rate to be paid on non-corporate taxpayer overpayments will be 3%.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans will be 1%.
- The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.94%.
Other taxes, duties, or charges
The interest rates on overdue and overpaid remittances will be as follows:
| Tax, duty, or other charges | Overdue remittances | Overpaid remittances – Corporate taxpayers | Overpaid remittances – Non- corporate taxpayers |
|---|---|---|---|
| Goods and services tax (GST) | 5% | 1% | 3% |
| Harmonized sales tax (HST) | 5% | 1% | 3% |
| Air travellers security charge | 5% | 1% | 3% |
| Excise tax (non-GST/HST) | 5% | 1% | 3% |
| Excise duty except brewer licensees (amounts due after June 30, 2003) | 5% | 1% | 3% |
| Excise duty except brewer licensees (amounts due before July 1, 2003) | 3% | N/A | N/A |
| Excise duty (brewer licensees) | 3% | N/A | N/A |
| Softwood lumber products export charge | 5% | 1% | 3% |
For information on the prescribed interest rates for other calendar quarters, go towww.cra.gc.ca/interestrates
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