When and how do SIFT partnerships pay income tax

SIFT partnerships do not have to pay tax in monthly instalments when the Part IX.1 tax payable for either the previous year or the current year is $3,000 or less.

Similarly, you do not have to make instalment payments on your provincial or territorial taxes if the total of your provincial or territorial taxes for the current or previous year is $3,000 or less. However, you have to pay your taxes, if any, on your balance due date. If your partnership earned income from Quebec, you have to pay the Quebec provincial SIFT tax directly to that province.

The balance of tax the SIFT partnership owes for a tax year is to be paid on the filing due date of the partnership information return.

Interest and penalties apply to late or insufficient payments. To be on time, you have to make your instalment and other payments on or before the due date. You can do this by mailing a cheque payable to the receiver general for Canada.

Note

Sometimes, interest and penalties on late payments can be waived or cancelled. For more information, see Cancel or waive penalties or interest.

Monthly instalment payments

You can calculate your monthly instalment payments using one of the following options:

Option 1 – One-twelfth (1/12) of the estimated tax payable for the current tax year (2024) is due each month of the tax year.

Option 2 – One-twelfth (1/12) of the tax payable from the previous tax year (2023) is due each month of the current tax year.

Option 3 – One-twelfth (1/12) of the tax payable from the year before the previous tax year (2022) is due in each of the first two months of the current tax year. One-tenth (1/10) of the difference between the tax for the previous tax year (2023) and the total of the first two payments is due in each of the remaining 10 months of the current tax year.

Instalment due dates

Instalment payments for Part IX.1 tax are due on the last day of every complete month of the SIFT partnership's tax year. The first payment is due one month minus a day from the starting date of the SIFT partnership's tax year. The rest of the payments are due on the same day of each month that follows.

For more information on instalment payments, see Guide T7B-CORP Corporation Instalment Guide

Forms and publications

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