Canada: Prescribed rates of interest for income tax, PLOI purposes (fourth quarter 2022)

Increases to interest rates for income tax purposes and for pertinent loan or indebtedness purposes, fourth quarter of 2022

Prescribed interest rate and interest rate estimated for PLOI for the fourth quarter

The prescribed interest rate for taxable benefits and for tax overpayments and underpayments, and the interest rate estimated for pertinent loan or indebtedness (PLOI) purposes for the fourth quarter of 2022 (1 October 2022 - 31 December 2022) reflect:

  • An increase of 1% to the prescribed income tax interest rate for taxable benefits, overpaid taxes, and underpaid taxes (that is, an increase from the rate that applies for the third quarter of 2022). Read an August 2022 report prepared by the KPMG member firm in Canada

  • An increase to the prescribed interest quarterly rate that is used to determine the deemed interest income inclusion from a PLOI—the rate is estimated to increase to 6.45% (from 5.20%) for the fourth quarter of 2022. Read an August 2022 report prepared by the KPMG member firm in Canada


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