Are you eligible to make quarterly instalment payments?

A small Canadian-controlled private corporation (CCPC) is eligible to make quarterly instalment payments if, at the time the payment is due:

  • it has a perfect compliance history
  • it has claimed a small business deduction for the current or previous tax year
  • together with any associated corporations, for the current or previous tax year:
    • it has taxable income of $500,000 or less
    • it has taxable capital employed in Canada for the tax year of $10 million or less

We consider you to have a perfect compliance history if, during the previous 12 months ending at the time your last instalment was due:

  • you remitted on time all the amounts required for:
    • GST/HST
    • withholding under subsection 153(1) of the Income Tax Act
    • Canada Pension Plan contributions
    • employment insurance premiums
  • you filed on time all returns required under the Income Tax Act or under Part IX of the Excise Tax Act (GST/HST)

Note

When a corporation ceases at any time in a tax year to be eligible to pay quarterly instalments, the corporation is still allowed to pay its next instalment due at the end of the current quarter; however, the corporation will have to begin to pay monthly instalments following that quarter.

See Are you no longer eligible to make quarterly instalment payments? for more details.

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