The Canada Revenue Agency (CRA) has published the prescribed annual interest rates for amounts owed to or by the agency in the second quarter of 2022, which runs from April 1 to June 30.
The prescribed rate on loans to family members remains unchanged from last quarter at 1%. Prescribed rate loans can be used to split investment income with a spouse, common-law partner or other family member with a lower income. The rate has been set at 1% since the third quarter of 2020.
The only change from the previous quarter is in the interest rate for corporate taxpayers’ pertinent loans or indebtedness, which will increase to 4.38% in the second quarter from 4.15% last quarter.
The interest rate charged on overdue taxes, Canada Pension Plan contributions and employment insurance premiums will be set at 5%. The rate to be paid on corporate taxpayer overpayments will be 1%; a 3% rate will be applied to non-corporate taxpayer overpayments.
The rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 1%.
Access the full list of the CRA’s prescribed interest rates.