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Business Tax Installment

Business Tax Installment

For Business tax installment, the instalment threshold will triple from $1000 to $3000, so that corporations will not have to pay corporate income tax by instalment unless their total tax liability is more than $3000.

Small Canadian-controlled private corporations (CCPCs) that are required to pay tax instalments may make those tax instalments quarterly rather than monthly if they meet certain conditions, such as having a taxable income for either the current or previous year that does not exceed $400,000 and having qualified for the small business tax deduction in either the current or the previous year.

For self-employed individuals (sole proprietorships and partnerships) tax installment, the personal income tax instalment threshold increases to $3000 from $2000.

For employers, the tax instalment threshold rises to $3000 from $1000, so employers with a perfect compliance history whose average monthly withholding amount for either of the two preceding calendar years is less than $1,000 will be able to pay by quarterly instalments rather than monthly.

For GST/HST registrants, the taxable supplies threshold triples to $1,500,000 from $500,000; so businesses than have taxable supplies that do not exceed $1,500,000 in a fiscal year file an annual GST/HST return and make quarterly instalment payments. The net tax threshold is also changing, increasing to $3000 from $1500, giving small businesses more of a chance of only having to make one annual tax remittance