CRA announces prescribed rate for Q2 2022

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.

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