Canada Revenue Agency announced the prescribed annual interest rates for the first calendar quarter of 2025.
The rates applied from January 1 to March 31, 2025.
For income tax, overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums carried an 8% rate.
CRA paid 4% on corporate taxpayer overpayments and 6% on non-corporate taxpayer overpayments.
The taxable-benefit rate for employee and shareholder interest-free or low-interest loans was 4%.
CRA also listed a 7.78% rate for corporate taxpayers' pertinent loans or indebtedness.
For GST, HST, the Air Travellers Security Charge, the fuel charge, most excise tax, the softwood lumber products export charge, the Underused Housing Tax, luxury tax, and digital services tax, overdue remittances generally carried an 8% rate.
These quarterly rates affect the cost of late payments and the amount CRA pays on certain overpayments. For businesses, they are part of cash-flow planning as much as tax administration.