Paying corporate taxes is an essential responsibility for businesses operating in Canada. Whether you’re a small business owner or running a larger corporation, making timely payments to the Canada Revenue Agency (CRA) helps you avoid penalties and interest. This guide outlines the different methods available to pay your corporate taxes and ensures your payments are applied correctly.
1. Pay Online (Fastest and Most Convenient)
Online payments are the most popular and efficient way to pay corporate taxes in Canada. You can make secure payments directly from your business bank account or through CRA’s online services.
Option 1: Through Your Bank
Most Canadian banks allow CRA payments via online banking.
Here’s how:
1. Log into your business online banking account.
2. Go to Pay Bills or Add Payee.
3. Search for CRA Payments – Corporation Tax (TXINS).
4. Enter your 15-digit Business Number (BN) (e.g., 123456789RC0001).
5. Confirm the payment amount and submit.
Option 2: CRA My Payment Service
1. Visit the CRA website: CRA My Payment.
2. Select Corporation Tax Payments.
3. Follow the prompts to complete your payment through your bank account.
Option 3: Pre-Authorized Debit (PAD)
Automate your corporate tax payments through PAD.
Steps:
1. Log into CRA My Business Account.
2. Select “Set up a pre-authorized debit” from the main dashboard.
3. Choose the amount, frequency, and payment date.
Option 4: Credit Card or Debit Card
Third-party services like Plastiq, PaySimply, and Paymentus allow you to pay CRA using your credit or debit card (with a small fee).
1. Visit their websites.
2. Select CRA Corporation Tax Payment.
3. Enter your Business Number (BN) and payment details.
2. In Person at Your Bank
If you prefer paying in person:
Option 1. Request a remittance voucher (Form RC160) from CRA.
1. Bring your voucher and payment to your bank.
2. The bank will process your payment.
Option 2. Cheque or Money Order (By Mail)
To pay by cheque:
1. Make the cheque payable to Receiver General for Canada.
2. Write your Business Number (BN) and tax period on the front of the cheque.
3. Mail it with your remittance voucher to the CRA address.
What Type of Payment Should You Select?
| Payment Type | When to Use It |
| Balance Due | When paying your tax balance by the due date. |
| Installments | When making monthly or quarterly tax installments. |
| Arrears Payment | For overdue payments. |
Tips to Avoid Payment Issues
• Use your correct 15-digit Business Number (BN).
• Confirm the tax period you’re paying for.
• Pay on time to avoid penalties and interest.
• Keep a copy of your payment receipt.
Final Thoughts
Paying corporate taxes to the CRA doesn’t have to be complicated. By choosing the right payment method and keeping track of deadlines, you can ensure your business stays compliant. Whether you prefer online payments, pre-authorized debits, or traditional methods, the CRA offers flexible options to suit your business needs.
If you’re feeling uncertain about navigating these changes, don’t hesitate to reach out to a professional for expert advice.
At Zera Accounting and Tax, CPA, we’re here to assist you with any questions or tax preparation needs. Feel free to contact us anytime on 437-776-5464 or visit us on www.zeracpa.com or email us as [email protected]
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