Tax Instalments: Are you on the hook for 2021?

July 2, 2021

What is a tax instalment?

An instalment payment is a partial payment of the total amount of tax payable for the year.

Personal Taxes

If your 2020 net tax owing is more than $3,000 in Ontario then you must instalments to the Canada Revenue Agency (CRA). The CRA may or may not send a tax instalment reminder and it is your responsibility to determine if you need to pay on the dates below:

Click the link below for more information from the CRA website:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html

Corporate Taxes

If your previous year’s tax payable or current year estimate for first time filers is more than $3,000 then your corporation has to pay their taxes in monthly or quarterly instalment payments to the CRA.

Click the link below for more information from the CRA website:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-payments/paying-instalments.html

Sales Taxes

If your previous year’s tax payable or current year estimate for first time filers is more than $3,000, you must pay quarterly instalments to the CRA . Below are samples of when and how to pay. More information can be access in the link below:

Click the link below for more information from the CRA website:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/pay-instalment.html

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Related posts

What are the benefits of regular bookkeeping?

What are the benefits of regular bookkeeping?

Bookkeeping is a crucial aspect of running a business, yet many entrepreneurs and small business owners neglect it. It's easy to get caught up in the day-to-day operations and overlook the financial health of your business. However, keeping track of your finances is...

Preparing your Business for Tax Season

Preparing your Business for Tax Season

As the year winds to a close, it presents you with the perfect time to plan for year-end taxes and make necessary adjustments for the new year. Don’t get blindsided by the holidays and neglect to put time and effort into year-end planning. The last thing you want is...