Prescribed Interest Rates for Q3 2024

On May 24, 2024, the CRA announced that the prescribed income tax interest
rates for taxable benefits, overpaid taxes, and underpaid taxes will decrease by one per cent in the third quarter of 2024 (July 1, 2024 - September 30, 2024).

  • The interest rate on overdue income taxes and penalties will decrease from ten to nine per cent.
  • The prescribed rate for refunds of overpaid tax will decrease from eight to seven per cent for non-corporate taxpayers and from six per cent to five per cent for corporate taxpayers.
  • The prescribed rate that applies to taxable benefits for employees and shareholders from interest-free and low-interest loans, as well as the

prescribed rate of family income-splitting loans will decrease from six to five per cent.

Employers who offer certain taxable benefits, such as low or no-interest employee loans, must calculate the associated taxable benefit amounts. This calculation must be based on the current government-prescribed interest rate to determine the value of the employee's benefit from the loan. Employers must stay updated with changes in the prescribed interest rate to maintain accurate and compliant benefit calculations.

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