Compliance
Compliance Essentials: New Interest Rates & Reporting Rules to Watch in 2026
Recent 2026 changes in prescribed interest rates, and key reporting obligations in sectors like trucking, require timely action — here’s what businesses and individuals must know.
By NomadicTax Research Team • 5-8 min read • March 10, 2026
## Prescribed Interest Rates: Affecting Corporate & Personal Obligations
The Canada Revenue Agency recently announced new **prescribed interest rates** that apply from **April 1 to June 30, 2026**. These rates affect overdue taxes, overpayments, and benefits, among other areas. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates/2026-q2.html?utm_source=openai))
- **Overdue taxes, CPP, EI**: 7% per annum
- **Overpaid amounts to corporate taxpayers**: 3%
- **Overpaid amounts to non-corporate taxpayers**: 5%
- **Rate for corporate loans/indebtedness**: around 6.20%
🛠️ *Actionable Tip:* If you owe tax after March 31, 2026, accrue interest at the new rate. If you're expecting corporate refunds or refunds from the CRA, you’ll receive interest at the new rate once CRA clears them.
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## Reporting Changes: Trucking Sector & Trusts
- **Trucking industry**: The CRA lifted the moratorium on penalties for failing to report “fees for services” paid to Canadian-controlled private corporations. For any trucking business with over **50% income from trucking activities**, payments over |CAD 500 annually must be reported via **Box 048 of T4A slips** starting the 2025 tax year. Penalties apply now. ([canada.ca](https://www.canada.ca/en/revenue-agency/news/2025/12/cra-strengthens-compliance-in-trucking-sector-by-lifting-the-moratorium-on-t4a-penalties.html?utm_source=openai))
- **Trusts & bare trusts**: Increasing reporting requirements under T3 returns and Schedule 15; CRA assessing unique forms and guidance. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/service-improvements-updates/unintended-consequences.html?utm_source=openai))
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## Key Changes to Tax Brackets & Credit Rates
- Lowest federal personal income tax rate drops from **15% to 14%**, effective July 1, 2025. For the 2025 tax year, a prorated rate of **14.5%** applies due to the mid-year implementation. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/whats-new.html?utm_source=openai))
- Non-refundable tax credits’ rates will be tied to this first bracket rate, so their value adjusts in tandem. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/whats-new.html?utm_source=openai))
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## Being Proactive: What You Should Do Now
- **Check your payroll deductions**: by July 1, 2025, withholding might change to reflect 14% rate for that portion; ensure pay administrators adjust tables. ([canada.ca](https://www.canada.ca/en/department-finance/corporate/transparency/2025/senate-cow-c4-2025-06-17.html?utm_source=openai))
- **Update financial models** for cash flow, especially if penalties or interest may apply under new prescribed rates.
- **For trucking businesses**, audit payments to contractors—ensure proper T4A filings to avoid penalties.
- **Review your credits**: If your non-refundable credits often exceed the first tax bracket threshold, the “Top-Up Tax Credit” may be relevant. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/whats-new.html?utm_source=openai))