Corporations have to pay income tax in monthly or quarterly installments unless the total of Part I, Part VI, Part VI.1, and Part XIII.1 taxes payable for either the previous year or the current year is $3,000 or less. The balance of tax the corporation owes for a tax year is due within either two or three months of the end of that tax year, depending on the circumstances of the corporation. Interest and penalties apply to late payments. To be on time, you have to make installment payments and other payments on or before the due date by using one of the several methods of making online payments:
- Pay online by using your financial institution’s online banking or telephone banking services;
- Pay online by using the CRA’s My Payment service at canada.ca/my-cra-payment;
- Pay by setting up a pre-authorized debit agreement using the My Business Account service at canada.ca/my-cra-business-account.
You can also pay in person at your financial institution in Canada. To do so, you have to use a remittance form, which you can request online in My Business Account at canada.ca/my-cra-business-account.
No comments yet.