Annual interest rates – 2016 Quarter 1

Annual interest rates for the first calendar quarter

The Canada Revenue Agency (CRA) today 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 January 1, 2016 to March 31, 2016.

There have been no changes to the prescribed interest rates since last quarter, except for the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

Income tax

  • The inannual interest ratesterest 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 over payments will be 1%.
  • The interest rate to be paid on non-corporate taxpayer over payments 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%.
  • Change: The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.41%.

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%

The overdue remittance rate is the rate of interest the taxpayer must pay on amounts due to the CRA.

The overpaid remittance rate is the rate of interest the CRA must pay on amounts due to the taxpayer.

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