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Instalment Requirements
1
Notes
(1) This table applies to all individuals, except farmers and fishers. Specific rules that apply to
farmers and fishers are discussed in note (8).
(2) Federal and Québec instalments for individuals are due on or before each payment due
date.
(3) Individuals resident outside Québec at the end of a taxation year are required to pay
quarterly tax instalments during the year if their net tax owing is more than $3,000 in the
current year or in either of the two preceding years.
Net tax owing generally includes federal taxes (net of applicable tax credits) that become
payable on or before the individual’s balance-due day for the year, the Old Age Security
clawback tax, the Québec abatement, provincial taxes excluding Québec’s (net of provincial
credits), and investment tax credits. These amounts are reduced by the total taxes withheld
at source to arrive at net tax owing. Net tax owing does not take into account losses
carried back to previous years, Canada/Québec Pension Plan (CPP/QPP) or Employment
Insurance overpayments, employee and partner GST rebates, Child Tax Benefit payments
or GST credits. Self-employed individuals must also include CPP/QPP contributions in their
instalment payments.
(4) Individuals resident in Québec generally have to pay quarterly Québec tax instalments
when the difference between Québec taxes payable and Québec taxes deducted at source
is more than $1,800 for the current year or in either of the two preceding years.
Individuals who have moved into or out of Québec will be required to use the applicable
federal or Québec instalment threshold and formula for each relevant year to determine
whether they are required to make instalment payments.
(5) Quarterly instalment requirements can be calculated by one of three instalment payment
options, or by following the reminder notices sent by the tax authorities (see note (6)). The
three instalment payment options are:
• Current year estimate—one-quarter of the current year’s estimated net tax owing
• Prior year method—one-quarter of the preceding year’s net tax owing
• Second preceding year method—For each of the first two instalments, one-quarter of
the second preceding year’s net tax owing and for the last two instalments, one-half of
the difference between the preceding year’s net tax owing and the total of the first two
instalments made.
(6) Instalment interest will be charged if individuals who are required to pay instalments make
late or deficient payments. However, if individuals make instalment payments based on
the Canada Revenue Agency (CRA) or Revenu Québec notices, they will not be subject to
interest charges or penalties, even if these payments fall short of their total tax liability.
Instalment interest is compounded daily using the applicable prescribed interest rate (see
the table “Prescribed Interest Rates”) and is determined using the instalment method that
calculates the least amount of interest. Individuals can reduce or eliminate interest charges
on deficient tax instalments by overpaying other instalments or paying other instalments
before their due date. This interest offset can reduce a potential interest liability but cannot
be used to earn interest.
Tax Owing
Thresholds
Payment Due Dates
2
Federal
$3,000
3
Mar.15
Jun.15
Sept.15
Dec.15
Québec
$1,800
4
Mar.15
Jun.15
Sept.15
Dec.15
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Current as of September 30, 2013