Measures Pertaining to Income Tax

Corporation income tax

Quarterly instalments

Canadian-controlled private corporations that, in the course of the taxation year preceding the current year, reported taxable income of no more than $500,000 (including the taxable income of any associated corporation) and paid-up capital of no more than $10 million (including the paid-up capital of any associated corporation) can make quarterly (instead of monthly) instalment payments of income tax.

As a result of this change, some 120,000 corporations can make quarterly (rather than monthly) instalment payments, thereby reducing the number of instalment payments from 12 to 4 per year. 

Annual payment

Corporations that had no more than $3,000 in income tax payable for the taxation year preceding the current year do not have to make instalment payments and are authorized to make a single annual payment of income tax. Formerly, the limit was $1,000.

As a result of this change, nearly 45,000 corporations are exempt from making instalment payments, thereby reducing the number of payments from 13 to 1 per year.

To take advantage of these measures, your situation must fall within the limits set for the current and preceding taxation year. You can contact us to confirm your eligibility. 

Personal income tax

As a rule, individuals in business do not have to make instalment payments if their estimated net income tax payable for the current year is no more than $1,800. Formerly, the limit was $1,200.

As a result of this change, nearly 22,000 individuals in business no longer have to make instalment payments during the year.

Should you be required to make instalment payments, we will send you remittance slips showing the amounts due based on the information from your income tax returns for the previous two years.