Manitoba Tax Instalments

Payment threshold and frequency

Corporations with tax payable of $5,000 or less for the previous taxation year, if this taxation year ends before May 1, 2017, must pay, no later than three months after the end-date of their fiscal period, an instalment amount equal to the previous year tax payable.

Corporations with tax payable of $5,000 or less for a taxation year that ends after April 30, 2017, is not required to pay instalments for the next year. However, you can select the box Select this box if you want the instalments to be calculated without taking the capital tax instalment threshold into account in order for the quarterly instalments to be calculated even if the threshold is not reached.

Corporations with an amount of tax payable exceeding $5,000 for the previous year must pay quarterly instalments. The quarterly instalments are payable on or before the fifteenth day of the third, sixth, ninth and twelfth month following the end of their preceding fiscal year.

Particular situations

According to information received from Manitoba Finance, new corporations formed as a result of an amalgamation or a transfer of assets will be considered as newly registered corporations. If their estimated tax payable for the current year exceeds $5,000, they are required to pay quarterly instalments equal to 25% of the estimated tax payable for the current year. However, the parent corporation’s instalments are not affected by the winding-up of a subsidiary.

Corporation’s dissolution

Please note that if you have indicated, on line 078 of Form Identification (Jump Code: ID), that this is the final tax return of the corporation as a result of its dissolution, the program will not calculate any instalment payments, because there will be no taxation year after the year of dissolution.

References

For more information, refer to subsections 17(1) through 17(4) of The Corporation Capital Tax Act.