Instalment requirements

Generally, corporations have to pay their taxes in monthly instalment payments or quarterly instalment payments. An instalment payment is a partial payment of the total amount of tax payable for the year.

There are special situations when you do not have to pay instalments.

Instalments are calculated based on the parts of the federal Income Tax Act that apply to your corporation, as well as your provincial and territorial tax:

  • Parts I, VI, VI.1, and XIII.1:
    • Part I – Tax on income;
    • Part VI – Tax on capital of financial institutions;
    • Part VI.1 – Tax on corporations paying dividends on taxable preferred shares; and
    • Part XIII.1 – Additional tax on authorized foreign banks;
  • Part XII.1 – Tax on carved-out income; and
  • Part XII.3 – Tax on investment income of life insurers.
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