Corporate Tax Calendar - Expert Fiscaliste

When to file your corporate income tax return:

File your return no later than six months after the end of each tax year. The tax year of a corporation is its fiscal period.

When the corporation’s tax year ends on the last day of a month, file the return by the last day of the sixth month after the end of the tax year.

When the last day of the tax year is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year.

Example

If your tax year ends March 31, your filing due date is September 30.
If your tax year ends August 31, your filing due date is February 28.
If your tax year ends September 23, your filing due date is March 23.

Note

You must file a return no later than three years after the end of a tax year to receive a tax refund.

Paying your balance of corporation tax

Information about the balance of tax

The balance of tax is the tax payable for the tax year after you have deducted the instalments already made for the year. This amount is paid two or three months after the end of the tax year depending on your balance-due day.

Balance-due day

The balance-due day is the date by which you have to pay the remainder of the tax you owe for the tax year. See paragraph 157(1)(b) of the Income Tax Act.

Generally, all corporation taxes (except Part III and XII.6) charged under the Income Tax Act are due two months after the end of the tax year.

However, for Parts I, VI, VI.1, and XIII.1 tax, the balance of tax is due three months after the end of the tax year if conditions 1 and 2 that follow are met, as well as condition 3 or 4:

the corporation is a Canadian-controlled private corporation (CCPC) throughout the tax year
the corporation claimed the small business deduction for the current or previous tax year
the corporation’s taxable income for the previous tax year does not exceed its business limit for that tax year (if the corporation is not associated with any other corporation during the tax year)
the total of the taxable incomes of all the associated corporations for their last tax year ending in the previous calendar year does not exceed the total of their business limits for those tax years (if the corporation is associated with any other corporation during the tax year) Corporation payments:

Exceptions:

Amalgamations
Wind-ups

Instalment requirements

Generally, corporations have to pay their taxes in monthly instalment payments or quarterly instalment payments. An instalment payment is a partial payment of the total amount of tax payable for the year.

Quarterly instalment payments

You can calculate the quarterly instalment payments of Parts I and VI.1 for an eligible small Canadian-controlled private corporation (CCPC) using one of the following options:

Option 1 – One-quarter (1/4) of the estimated tax payable for the current tax year is due each quarter of the tax year.

Option 2 – One-quarter (1/4) of the tax payable from the previous tax year is due each quarter of the current tax year.

Option 3 – One-quarter (1/4) of the tax payable from the year before the previous tax year is due the first quarter of the current tax year. One-third (1/3) of the difference between the tax for the previous tax year and the first payment is due in each of the remaining three quarters of the current tax year.

We will assess your return using the option that results in the least amount payable by instalments.

Eligibility to make quarterly instalment payments

A small Canadian-controlled private corporation (CCPC) is eligible to make quarterly instalment payments if, at the time the payment is due:

it has a perfect compliance history
it has claimed a small business deduction for the current or previous tax year
together with any associated corporations, for the current or previous tax year:
- it has taxable income of $500,000 or less
- it has taxable capital employed in Canada for the tax year of $10 million or less

We consider you to have a perfect compliance history if, during the previous 12 months ending at the time your last instalment was due:

you remitted on time all the amounts required for:
- GST/HST
- withholding under subsection 153(1) of the Income Tax Act
- Canada Pension Plan contributions
- employment insurance premiums
you filed on time all returns required under the Income Tax Act or under Part IX of the Excise Tax Act (GST/HST)

There are special situations when you do not have to pay instalments.

Tax payable of $3,000 or less

You do not have to make instalment payments on your federal taxes if the total of your taxes payable under Parts I, VI, VI.1, and XIII.1, determined before taking into consideration specified future tax consequences, and prior to the deduction of current-year refundable tax credits, is $3,000 or less for either the current or previous year.

If your Part XII.3 tax is $3,000 or less in the current or previous year, you do not have to make instalment payments on this tax.

Similarly, you do not have to make instalment payments on your provincial or territorial taxes if the total of your provincial or territorial taxes for the current or previous year is $3,000 or less

If your net corporate tax owing for the previous year is greater than $3000 you will need to pay installments
Generally, corporations have to pay their taxes in monthly instalments.
A small CCPC is eligible to make quarterly instalment payments if, at the time the payment is due:
- it has a perfect compliance history.
- it has claimed a small business deduction for the current or previous tax year; and
- together with any associated corporations, for the current or previous tax year:
- it has taxable income of $500,000 or less; and
- it has taxable capital employed in Canada for the tax year of $10 million or less.
  - They consider you to have a perfect compliance history if, during the previous 12 months ending at the time your last instalment was due:
    - you remitted on time all the amounts required for GST/HST, withholding under subsection 153(1) of the Income Tax Act, Canada Pension Plan contributions and employment insurance premiums; and
    - you filed on time all returns required under the Income Tax Act or under Part IX of the Excise Tax Act (GST/HST).