After a long year of hard work, filing your T2 corporate income tax return is a major milestone. But there’s one final, critical step: paying your corporate tax balance due. For many Canadian business owners, understanding the payment process can be confusing, and a missed deadline can result in costly penalties and interest. This checklist will guide you through the process of paying your corporate tax balance due online, ensuring you meet your obligations to the Canada Revenue Agency (CRA) efficiently and on time.
At Padgett Business Services, we specialize in helping entrepreneurs navigate the complexities of corporate taxes. This guide is designed to provide you with the clarity and confidence you need to manage your tax payments effectively.
Before You Begin: Your Payment Checklist
Before you start, gather the following essential information:
- Your 15-character Business Number (BN): This is your unique identifier with the CRA.
- The exact balance of tax owing: This is the amount calculated on your T2 return after accounting for any instalment payments made during the year.
- Your tax year-end date.
- Access to your online business banking or your CRA My Business Account credentials.
Pro Tip: Your corporate tax payment deadline is different from your filing deadline. For most corporations, the payment is due two months after the fiscal year-end, while the T2 return is not due until six months after the year-end. Don’t get caught by surprise—mark your payment deadline on your calendar!
Understanding Your Balance-Due Day
Your balance-due day is the deadline for paying any corporate income tax you still owe for the tax year. The date depends on your corporation’s status:
| Corporation Type | Balance-Due Day |
| Most Corporations | Two months after the end of the tax year. |
| Eligible Canadian-Controlled Private Corporations (CCPCs) | Three months after the end of the tax year. |
To qualify for the three-month extension, a CCPC must have claimed the small business deduction and have a taxable income within the $500,000 business limit for the current or previous tax year.
How to Pay Your Corporate Tax Balance Due Online
Method 1: Online Banking (The Most Convenient Option)
This is the most common and straightforward method for paying your corporate taxes.
Step 1: Log in to Your Business Banking Portal
Access your financial institution’s online business banking platform.
Step 2: Navigate to Bill Payments
Look for the section labeled “Pay Bills,” “Bill Payments,” or “Government Remittances.”
Step 3: Add the CRA as a Payee
Search for “Canada Revenue Agency” or “CRA.” It is crucial to select the correct payee for corporate tax payments:
- Choose “CRA (Revenue) – Corporation” or a similar option.
Critical: Selecting the wrong payee (e.g., payroll or GST/HST) will cause your payment to be misallocated and can lead to penalties for non-payment.
Step 4: Enter Your Business Number
Input your complete 15-character Business Number.
Step 5: Submit Your Payment
Enter the balance due amount and the payment date. Be sure to save the confirmation number for your records.
Method 2: CRA My Business Account (For Enhanced Security and Confirmation)
Paying directly through your CRA My Business Account provides immediate confirmation and allows you to view your account balance in real-time.
Step 1: Access My Business Account
Log in to the CRA’s online portal.
Step 2: Navigate to “Make a Payment”
Once logged in, you will find an option to make a payment.
Step 3: Choose Your Payment Method
You can select from:
- My Payment: Pay directly using Visa® Debit, Debit Mastercard®, or Interac® Online.
- Pre-authorized debit: Schedule a one-time or recurring payment to be withdrawn from your bank account.
Step 4: Complete the Payment Process
Follow the on-screen instructions to complete your payment. You will receive a confirmation number and your account will be updated instantly.
Troubleshooting and Key Reminders
- Use the Right Remittance Voucher: If paying in person at a bank or by mail, you must use an original remittance voucher, such as Form RC177, Remittance Voucher – Balance Due. Photocopies are not accepted. Remittance vouchers can be ordered from the CRA through your My Business Account.
- Don’t Combine Payments: Your balance due payment should be separate from any instalment payments.
- Weekends and Holidays: If your balance-due day falls on a weekend or public holiday, your payment is due on the next business day.
- Payment Confirmation: Always keep a record of your payment confirmation number.
Take the Stress Out of Corporate Taxes
Paying your corporate tax balance due is just one part of your annual tax obligations. From calculating instalments to strategic tax planning, managing corporate taxes can be a significant burden for busy entrepreneurs.
At Padgett Business Services, we provide comprehensive corporate tax services to help you stay compliant, minimize your tax liability, and free up your time to focus on what matters most—growing your business.
Our services include:
- T2 Corporation Income Tax Return Preparation and Filing
- Corporate Tax Planning and Strategy
- Installment Payment Calculations and Reminders
- Representation and Communication with the CRA
Partner with a Trusted Tax Advisor
Don’t let corporate taxes be a source of stress and confusion. Partner with the experts at Padgett and gain the peace of mind that comes with knowing your taxes are in good hands.
Ready to simplify your corporate tax process? Find your nearest Padgett office and schedule a consultation today.