CRA releases interest rates for second quarter

Rates apply to amounts owed to CRA, amounts CRA owes individuals, corporations
|payroll-reporter.com|Last Updated: 03/18/2013

The prescribed annual interest rates that will apply to any amounts owed to the Canadian Revenue Agency (CRA) and to any amounts the CRA owes to individuals and corporations have been set.

These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1 to June 3, the CRA said. The rates listed below remain unchanged from the previous quarter.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan (CPP) contributions, and employment insurance premiums will be five per cent.
• The interest rate to be paid on corporate taxpayer overpayments will be one per cent.
• The interest rate to be paid on non-corporate taxpayer overpayments will be three per cent.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be one per cent.

Other taxes, duties, or charges

The interest rates on overdue and overpaid remittances are as follows:

Tax and dutyOverdue remittances

Overpaid remittances


Corporate taxpayersNon corporate taxpayers
Goods and services tax (GST)five per centone per centthree per cent
Harmonized sales taxfive per centone per centthree per cent
Air travelers security chargefive per centone per centthree per cent
Excise tax (non GST)five per centone per centthree per cent
Excise duty (except brewer licensees)five per centone per centthree per cent
Excise duty (brewer licensees)three per centN/AN/A
Softwood lumber products export chargefive per centone per centthree per cent

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