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 of the estimated tax payable for the current tax year is due each quarter of the tax year.

Option 2 – One-quarter of the tax payable from the previous tax year is due each quarter of the current tax year.

Option 3 – One-quarter of the tax payable from the year before the previous tax year is due the first quarter of the current tax year. One-third 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.

Note

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.

Worksheets

We provide two worksheets to help you calculate your estimated tax payable and tax credits, as well as your quarterly instalment payments:

For more information and an example of calculation, see Worksheets.

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