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