The Business Tax Instalment Payment Plan (BTIPP) is a popular program that allows you to pay your business tax on a monthly basis instead of a single annual payment.
Your payment is automatically withdrawn from your chequing account the first day of every month, making budgeting easier and eliminating the risk of a 7% penalty.
How does BTIPP work?
Each year business tax are billed in February, due at the end of March and cover the period from January 1 to December 31.
If you pay through BTIPP you don't need to worry about the payment deadline or late payment penalties. Your taxes are spread over 12 months, starting January 1, with your account being paid in full after your December 1 instalment.
Your instalment amount is calculated by dividing your most recent annual tax levy by 12, rounded up to the nearest dollar. This amount is paid through automated withdrawals from your bank account the first day of each month.
When you receive your annual tax bill in Februrary your instalment will be adjusted to reflect the actual tax levy, ensuring your account is paid in full by year end. You don't need to worry about the annual business tax payment deadline or risk a 7% late payment penalty.
Your annual business tax bill will show:
- The BTIPP credit-to-date.
- The new instalment amount for the remainder of the year.
- The date we will start withdrawing the new instalment amount.
- BTIPP automatically continues from year to year.
- All instalment amounts are reviewed in November.
- If an adjustment is made to your instalment amount, you will be notified.