Quarterly instalment payments
You can calculate the quarterly instalment payments of Parts I and VI.1 for an eligible small Canadian-controlled private corporation (CCPC) using one of the following options:
Option 1 – One-quarter (1/4) of the estimated tax payable for the current tax year is due each quarter of the tax year.
Option 2 – One-quarter (1/4) of the tax payable from the previous tax year is due each quarter of the current tax year.
Option 3 – One-quarter (1/4) of the tax payable from the year before the previous tax year is due the first quarter of the current tax year. One-third (1/3) of the difference between the tax for the previous tax year and the first payment is due in each of the remaining three quarters of the current tax year.
We will assess your return using the option that results in the least amount payable by instalments.
We will charge interest if you use option 1 and your estimated tax was lower than the year's actual tax and the tax calculated using option 2 or 3.
We provide two worksheets to help you calculate your estimated tax payable and tax credits, as well as your quarterly instalment payments:
- Worksheet 1 – Calculating estimated tax payable and tax credits for 2021
- Worksheet 3 – Calculating quarterly instalment payments for 2021
For more information and an example of calculation, see Worksheets.
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