Common Questions about Corporation Capital Tax
Our corporation is a general corporation and has a taxable value of paid-up capital. Am I still required to file a Corporation Capital Tax return even though the tax rate is nil?
General corporations with a fiscal year beginning after June 30, 2008 are not required to file a Corporation Capital Tax return. The Corporation Capital Tax on these corporations was eliminated on July 1, 2008.
Our corporation is a resource corporation and my taxable paid-up capital will be in excess of the $10 million exemption. Am I still required to complete all sections of the return relating to paid-up capital?
Yes, all sections of the Corporation Capital Tax return should be completed. A complete return is required for verification purposes to ensure only those corporations which meet the definition of a resource corporation are liable to pay the tax.
Our company has had an amalgamation. What documents are required to be filed?
Upon an amalgamation or legal name change, the corporation is required to forward a copy of the certificate of amalgamation or name change. Amalgamations also require that a Saskatchewan Corporation Capital tax return be filed for the date prior to when the amalgamation occurred. If your company has amalgamated with another company who also has a corporation capital tax number, we request that you inform us which account number you would like to continue filing under.
What are the current interest rates?
Interest rates are set every six months. Interest is charged on late or underpaid taxes and interest is paid on tax overpayments.
Are instalment payments required to be paid in the first year I become taxable?
If the corporation will be paying less than $4,800 in tax annually, no instalment payments are required. If the corporation will be paying $4,800 or more annually, the corporation is required to remit equal monthly instalments of at least 75% of the tax payable for the first fiscal year. If instalments of less than this amount are remitted, interest charges will be levied on the deficit amounts.
Corporation Capital Tax applies to corporations which have paid-up capital in excess of $10,000,000.