When are instalment payments required?
For a corporation’s first taxation year, monthly instalments are not required. In subsequent taxation years, monthly instalments are required unless either the previous taxation year’s total tax payable or the current taxation year’s total tax payable is less than $2,000. The monthly instalments are required to be paid on or before the last day of each month. As announced in the 2001 Ontario Budget, the instalment requirements for small businesses have been simplified. Effective for taxation years commencing after December 31, 2001, corporations are permitted to pay their instalments quarterly if their tax payable in the current or preceding taxation year is greater than or equal to $2000 and less than $10,000.
