Pay by instalments

Generally, corporations have to pay their taxes in instalments. An instalment payment is a partial payment of the total amount of tax payable for the year. The Income Tax Act requires corporations to make instalment payments so that they are treated the same as taxpayers who have tax deducted at source from their income.

For tax years beginning after 2007, the income tax instalment threshold for corporations has increased to $3,000 and the instalment frequency for eligible Canadian-controlled private corporations has been reduced to quarterly.

Forms and publications

• Corporation Instalment Guide (T7B-CORP)
• Form T2WS1, Calculating estimated tax payable and tax credits for 2009
• Form T2WS2, Calculating monthly instalment payments for 2009
• Form T2WS3, Calculating quarterly instalment payments for 2009