Non-Resident Corporations in Canada – Registration, Tax Filing & Compliance Toronto

Set up correctly, file in the right province, and stay compliant with CRA as a non‑resident company doing business in Canada

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Affordable Non-Resident Corporation Tax & Compliance

Looking for reliable and affordable services for non-resident corporations in Canada? We specialize in registration, corporate tax filing, and compliance support tailored for businesses operating in Toronto and across Ontario. Our team ensures your corporation meets all CRA and provincial requirements while maximizing available deductions and minimizing penalties.

Whether you’re establishing a new non-resident corporation or managing ongoing tax obligations, our experts provide clear guidance every step of the way. From preparing T2 returns to handling GST/HST filings and payroll compliance, we help your business stay financially organized, audit-ready, and fully compliant with Canadian regulations.

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Why Accurate Corporate Tax Filing Matters for Non-Resident Corporations

For non-resident corporations in Canada, precise corporate tax filing is critical to avoid costly penalties, interest charges, and potential audits by the CRA. Accurate filings ensure your business claims all eligible deductions, complies with federal and provincial tax regulations, and maintains a strong financial reputation in Toronto and across Ontario. Proper tax management also helps optimize cash flow and supports strategic business planning for long-term success.

Services for Non‑Resident Corporations

Corporate Tax Filing for Non‑Resident Corporations

Professional Corporate tax preparation and return filing, ensuring accuracy and CRA compliance.

Accounting & Bookkeeping for Non‑Resident Corporations

Reliable bookkeeping and accounting with financial statements, records, and reporting.

Corporate Tax Planning for Non‑Resident Corporations

Smart Corporate tax planning to optimize savings, reduce liabilities, and maintain compliance.

Catch-Up Corporate Tax Filing for Non‑Resident Corporations

File overdue corporate tax returns, clean up missing records, and get your business back into CRA compliance with accurate, stress-free catch-up filing support.

GST/HST Filing for Non‑Resident Corporations

Affordable GST/HST filing to help your business stay compliant, maximize input tax credits, and avoid CRA penalties.

Corporate Tax Cleanup for Non‑Resident Corporations

Resolve past corporate tax issues and bring your filings fully compliant and up to date.

CRA Audit Resolution Services for Non‑Resident Corporations

Expert support to handle Canada Revenue Agency audits, disputes, and negotiations with confidence.

CPA Compilation Report (Notice to Reader) for Non‑Resident Corporations

Deliver clear CPA Compilation Reports (Notice to Reader) for reliable financial insights.

Incorporation Services for Non‑Resident Corporations

Incorporation services in Toronto for smooth business formation, entity setup, and start-up support.

Catch-Up Bookkeeping Services for Non‑Resident Corporations

Catch up overdue bookkeeping, organize financial records, and keep your business accurate, compliant, and ready for tax filing.

US Corporation & LLC Tax Filing for Non‑Resident Corporations

Professional US Corporation and LLC tax filing to ensure IRS compliance, accurate reporting, and timely tax return submission.

Voluntary Disclosure Program for Non‑Resident Corporations

Correct past tax errors through the CRA Voluntary Disclosure Program, reduce penalties, and restore tax compliance with confidence.

Non-Resident Corporation in Canada Services

Full Canadian tax and accounting support for non-resident corporations — incorporation, bookkeeping, T2 filing, GST/HST, tax planning, catch-up and cleanup work, CRA audits, voluntary disclosures, and US corporation and LLC filings, handled end to end for foreign-owned businesses by a CPA at AFFORDABLE flat-fee pricing with no surprise fees.

Corporate Tax Filing for Non-Resident Corporations

We analyze whether the corporation has a permanent establishment in Canada under the relevant tax treaty, reviewing its offices, employees, agents, and contracts, since this test determines whether its business profits are taxable in Canada at all.
We prepare the complete T2 return, including Schedule 97 for non-resident corporations and Schedule 91 where a treaty-based exemption is claimed, so every disclosure CRA expects from a foreign-owned filer is included and accurate.
We file the T2 even in years where no Canadian tax is owing, since a non-resident carrying on business in Canada must still file to claim its treaty exemption and avoid the penalties that apply to non-filers.
We calculate the branch tax on Schedule 20 where the corporation operates through a Canadian branch rather than a subsidiary, applying the reduced treaty rate where one is available so after-tax branch profits are not overtaxed.
We prepare and file the T2 at an affordable flat fee, agreed before the work begins, so a foreign owner knows the full cost of Canadian compliance up front with no hourly billing or surprise charges.

Accounting & Bookkeeping for Non-Resident Corporations

We maintain the Canadian books to a CRA-ready standard every month, so the records support the T2, reconcile to the bank, and hold up when CRA reviews a foreign-owned corporation's income, expenses, and related-party activity.
We record foreign-currency transactions and translate them correctly into Canadian dollars, since a non-resident's Canadian activity often settles in US dollars or other currencies and errors here distort both income and tax.
We track every intercompany transaction with the foreign parent, including management fees, loans, and recharged costs, so related-party activity is documented for transfer pricing and the T106 information return.
We produce monthly financial reporting that reconciles to the parent's reporting period and chart of accounts, so the Canadian numbers drop into the group's consolidation without rework from the foreign finance team.
We keep the books for a predictable monthly flat fee with no surprise fees, so a foreign-owned corporation can budget its Canadian accounting cost the same way it budgets any other fixed overhead.

Corporate Tax Planning for Non-Resident Corporations

We compare the branch and subsidiary structures for the Canadian operation, since the choice drives branch tax, dividend withholding, liability exposure, and filing obligations for the foreign parent for years to come.
We plan the repatriation of Canadian profits at the reduced treaty withholding rate, timing and structuring dividends, interest, and fees so money leaving Canada is not taxed more heavily than the treaty requires.
We review intercompany debt against the thin capitalization rules, since interest on debt above the permitted ratio is denied as a deduction and treated as a dividend subject to non-resident withholding tax.
We plan intercompany pricing and supporting documentation under section 247, so charges between the Canadian entity and the parent reflect arm's-length terms and hold up if CRA challenges them in an audit.
We plan the Canadian tax position at a cost-effective flat fee, so a foreign owner gets structured, forward-looking advice without an open-ended hourly bill every time a planning question comes up.

Catch-Up Corporate Tax Filing for Non-Resident Corporations

We identify every unfiled T2 year, including years where the foreign owners assumed a treaty exemption or a lack of Canadian profit meant no return was required, so nothing is missed when the corporation catches up.
We prepare each overdue return with the Schedule 91 and 97 disclosures a non-resident filer needs, so every year is filed complete and correct the first time rather than reopened later by CRA.
We assess the late-filing penalties and interest in play for each year, including the separate penalty that applies to non-residents who claim treaty exemptions, so the owners understand their exposure before filing.
We advise whether a voluntary disclosure should be made before the catch-up returns are filed, since filing first can cost the corporation its chance at penalty and interest relief under the CRA program.
We file the overdue years at an affordable flat fee quoted per year, so a foreign-owned corporation can get fully current with CRA at a known cost rather than facing an unpredictable catch-up bill.

GST/HST Filing for Non-Resident Corporations

We determine whether the corporation must register for GST/HST, since a non-resident's obligation depends on whether it carries on business in Canada, sells digital products or services here, or qualifies as a small supplier.
We handle the non-resident registration process, including the security deposit CRA can require from a registrant with no permanent establishment in Canada, so the corporation is registered correctly from its first sale.
We file the ongoing GST/HST returns on time each reporting period and claim every eligible input tax credit, so the corporation recovers the tax it paid on Canadian expenses and avoids late-filing penalties and interest.
We apply the correct GST or HST rate to each sale based on the province where the supply is made, since a non-resident selling across provinces must charge by place of supply rather than a single national rate.
We file GST/HST returns affordably at a flat fee per period, so a foreign-owned corporation keeps its indirect-tax compliance current without paying hourly rates for routine filings.

Corporate Tax Cleanup for Non-Resident Corporations

We reconcile the corporation's CRA accounts against its own records, confirming balances, credits, payments, and assessments for each program, so every problem is identified before anything is corrected or refiled.
We correct errors in previously filed T2 returns through formal adjustment requests to CRA, so prior years reflect the right income, deductions, and treaty positions and do not carry mistakes into future years.
We file missing information returns such as the T106 and NR4, which non-resident corporations often overlook and which carry their own penalties when they go unfiled for one year or several.
We clear up withholding problems on payments to the parent, where too little tax was withheld or remitted on dividends, interest, or fees, so the corporation's exposure as payer is resolved and closed.
We clean up the tax history at a flat fee with no surprise fees, so a foreign-owned corporation can put its Canadian filings right without worrying about the cost growing as each issue is uncovered.

CRA Audit Resolution Services for Non-Resident Corporations

We act as the corporation's authorized representative with CRA, handling calls, letters, and meetings directly, so foreign owners are not left dealing with auditors across time zones in an unfamiliar tax system.
We respond to CRA reviews of permanent establishment, treaty claims, and non-resident withholding, since these are among the most common audit issues raised against foreign-owned corporations operating in Canada.
We support transfer pricing audits with the intercompany agreements, pricing analysis, and contemporaneous documentation CRA asks for, so the corporation's related-party charges can be defended on the record.
We file notices of objection within the 90-day deadline where a reassessment is wrong, and negotiate the outcome with CRA's appeals division so the corporation is not left paying tax it does not owe.
We resolve CRA audits with no hourly billing, quoting the work up front, so a foreign owner can defend its position fully without watching the cost climb with every letter CRA sends.

CPA Compilation Report (Notice to Reader) for Non-Resident Corporations

We prepare compiled financial statements under CSRS 4200, the Canadian standard that replaced the former Notice to Reader engagement, so the corporation's statements are prepared to the current professional standard.
We build the statements directly from the Canadian books and supporting records, so the balance sheet and income statement tie to the T2 return and its GIFI schedules without unexplained differences.
We present the figures in a clear format the foreign parent can use in its own reporting and consolidation, so the Canadian results are easy for the group's finance team and home-country advisors to work with.
We make clear up front that a compilation provides no audit or review assurance, so you know early whether a lender, investor, or foreign parent will require a higher level of assurance on the statements.
We prepare the compilation at an affordable flat fee, often combined with the year-end T2, so a foreign-owned corporation gets its Canadian statements and tax return together at one predictable cost.

Incorporation Services for Non-Resident Corporations

We advise on federal versus provincial incorporation, since the federal CBCA requires at least 25% Canadian-resident directors while Ontario no longer requires any, which matters a great deal for a foreign-owned company.
We handle extra-provincial registration where the corporation operates in a province beyond the one it incorporated in, so it is properly registered everywhere it carries on business in Canada.
We register the Business Number and the program accounts the corporation needs for corporate income tax, GST/HST, and payroll, including the extra identity steps CRA applies when directors are non-resident.
We coordinate the Canadian setup with the foreign parent's structure and share ownership, so the new entity fits the group from the start and does not need to be restructured later at added cost.
We handle the incorporation at a cost-effective flat fee with transparent pricing, covering the filings and registrations a foreign owner needs to start operating in Canada without hidden add-on charges.

Catch-Up Bookkeeping Services for Non-Resident Corporations

We rebuild missing periods from bank statements, invoices, receipts, and the parent's own records, so every overdue year has a complete and accurate set of Canadian books before any tax return is prepared.
We reconstruct intercompany balances with the foreign parent year by year, so related-party loans, fees, and recharges agree on both sides and support the transfer pricing and T106 filings that follow.
We correct foreign-currency entries that were recorded inconsistently or not translated at all, so the Canadian figures are stated properly in Canadian dollars and the resulting tax calculations are correct.
We deliver finished books ready for the overdue T2 and GST/HST filings, so the catch-up tax work can begin immediately and the corporation moves back into compliance as quickly as possible.
We catch up the books at a flat fee with no surprise fees, quoted by the number of periods involved, so a foreign-owned corporation knows the full cost of getting its records current before work begins.

US Corporation & LLC Tax Filing for Non-Resident Corporations

We prepare Form 1120 for US C corporations and Form 1065 for multi-member LLCs taxed as partnerships, including the related schedules, so the US entity behind the Canadian operation meets its IRS filing obligations.
We file Form 5472 with the pro forma Form 1120 for foreign-owned single-member LLCs, since missing or incomplete filings carry a $25,000 IRS penalty per form regardless of whether any US tax is owed.
We address how Canada treats a US LLC, since CRA treats it as a corporation for Canadian tax purposes and access to treaty benefits depends on who its members are and where they are resident.
We align the US filings with the Canadian T2, so income, intercompany amounts, and treaty positions are reported consistently in both countries and neither tax authority sees figures that conflict.
We file US returns at an affordable flat fee, so a cross-border group can have its Canadian and US compliance handled by one CPA firm at a known cost instead of coordinating separate advisors.

Voluntary Disclosure Program for Non-Resident Corporations

We assess whether the corporation qualifies for the Voluntary Disclosure Program, since relief depends on coming forward before CRA begins any enforcement action or contact related to the issues being disclosed.
We prepare a single disclosure covering unfiled T2 returns, unremitted non-resident withholding, or unreported GST/HST, so every issue is resolved in one application rather than surfacing separately later.
We quantify the tax, penalties, and interest at stake for each year before the disclosure is filed, so the foreign owners know the likely cost and the relief available before they commit to coming forward.
We follow the disclosure through CRA's review, answering questions and providing supporting records, so the relief granted matches what the corporation applied for and the matter is closed properly.
We handle the disclosure at a cost-effective flat fee, so a foreign-owned corporation can correct its past Canadian tax errors on the best available terms without an open-ended professional bill.

SIMPLE PROCESS

Corporate Tax Filing Process for Non‑Resident Corporations in Canada

Navigating corporate taxes in Canada as a non-resident can be complex. Our streamlined process ensures your non-resident corporation meets all CRA compliance requirements, from registration and bookkeeping to T2 filing and GST/HST submissions. We make Canadian corporate tax simple, accurate, and stress-free.

Entity Setup & Registration

We help non-resident corporations select the right structure and handle extra‑provincial registration for smooth Canadian operations.

Business Number & CRA Accounts

Get assistance setting up corporate tax, GST/HST, and payroll accounts to remain fully compliant with Canadian regulations.

Bookkeeping & Record Keeping

Maintain accurate, Canadian‑GAAP-ready books with monthly updates, ensuring financial transparency and audit readiness.

Tax Filing & Compliance

From T2 corporate returns to permanent establishment analysis, we handle all filings and coordinate with foreign advisors for optimal tax outcomes.

Why Incorporate an Ontario Corporation as a Non-Resident

For a foreign owner entering Canada, Ontario is one of the most practical places to incorporate. It allows a board made up entirely of non-residents, sits at the centre of Canada’s largest provincial economy, and handles corporate filings online, so a foreign-owned company can be set up and run from abroad.

100% foreign ownership

An Ontario corporation can be wholly owned by non-resident individuals or by a foreign parent company, with no Canadian shareholder required. Combined with an all-foreign board, the owners keep full ownership and full control of the Canadian entity.

Canada’s largest provincial economy

Ontario is Canada’s most populous province, and Toronto is the country’s main centre for finance, technology, and head offices. An Ontario corporation sits close to customers, suppliers, and banks, and next to major US markets across the Great Lakes.

Set up and maintained online

Incorporation, changes, and annual returns are filed through the Ontario Business Registry, so no one needs to travel to Canada. The corporation does need a registered office address in Ontario, where its records are kept and official notices are delivered.

More privacy on ownership

Ontario corporations keep their register of individuals with significant control at the registered office. Federal corporations must file this information with Corporations Canada, where parts of it are publicly searchable.

Room to grow across Canada

An Ontario corporation can operate in other provinces by registering extra-provincially there. It adds each registration only when it actually starts doing business in that province, rather than paying for registrations it may never use.

Ontario vs federal incorporation for non-residents

Both are sound choices, and the right one depends on how the business will operate. Here is how they compare on the points that matter most to a foreign owner.

	Ontario corporation (OBCA)	Federal corporation (CBCA)
Resident Canadian directors	None required	At least 25% of directors
Foreign ownership	Up to 100%	Up to 100%
Significant-control register	Kept at the registered office	Filed with Corporations Canada, partly public
Name protection	Within Ontario	Across Canada
Operating in other provinces	Extra-provincial registration in each province	Extra-provincial registration in each province
Corporate income tax	Based on where the business operates	Based on where the business operates
Small business tax rate	Not available to non-resident-controlled corporations	Not available to non-resident-controlled corporations

Why Choose Gondaliya CPA for Non‑Resident Corporate Tax Filing?

Expertise in Non‑Resident Taxation

Our team understands the unique challenges of Canadian corporate tax for non-resident corporations, ensuring accurate filings and compliance.

End-to-End Service

From entity setup to ongoing bookkeeping and T2 filing, we provide a complete solution to simplify your Canadian tax obligations.

Cross-Border Coordination

We collaborate with foreign advisors to optimize tax treaties, group-level planning, and minimize your international tax exposure.

Accurate & Timely Filing

Our proactive approach ensures deadlines are met, penalties avoided, and financial records are audit-ready at all times.

Official Partner

Transparent Pricing – No Hidden Fees

Pricing

We believe in clear, upfront pricing so you know exactly what to expect.

Business Formation: Flat $35
Incorporation Process: Flat $35
Entity Setup Assistance: Flat $35
New Business Support: FREE for our clients
Tax Preparation (Corporation): From $400
Tax Return Filing (Corporation): From $400
Accurate Tax Submission – Ensure compliance with CRA requirements
Tax Compliance Audit – FREE CRA audit support for our clients

Ready for affordable tax savings and clean books?

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Industries We Serve – Non‑Resident Corporation Registration & Tax Filing

Startups

Specialized startup tax & accounting

Healthcare

Specialized healthcare tax & accounting

Consultants

Specialized consulting tax & accounting

Small Businesses

Specialized small business tax & accounting

Restaurants

Specialized restaurant tax & accounting

Franchises

Specialized franchise tax & accounting

Self-Employed

Specialized self-employed tax & accounting

Manufacturing

Specialized manufacturing tax & accounting

Grocery Stores

Specialized grocery tax & accounting

Import & Export

Specialized import/export tax & accounting

Frequently Asked Non-Resident Corporation Questions

What does it mean to operate a non-resident corporation in Canada?

A non-resident corporation is a business incorporated outside of Canada but earning income from Canadian sources or conducting business within Canada. Such corporations must follow Canadian tax and regulatory requirements. Gondaliya CPA guides non-resident companies through registration, bookkeeping, and compliance to ensure smooth operations in Canada.

Do non-resident corporations need a Canadian business number?

Yes. Non-resident corporations must obtain a Business Number (BN) from the CRA to manage corporate taxes, GST/HST, and payroll obligations. Gondaliya CPA can help set up all required CRA program accounts accurately to ensure compliance.

When is a non-resident corporation required to file a T2 corporate tax return?

A non-resident corporation must file a T2 return if it earns income from Canadian sources or has a permanent establishment in Canada. Filing deadlines generally fall six months after the fiscal year-end, but Gondaliya CPA ensures timely submission to avoid penalties.

How do non-resident corporations handle GST/HST in Canada?

Non-resident corporations providing taxable goods or services in Canada may need to register for GST/HST. Gondaliya CPA helps with registration, calculates GST/HST obligations, and prepares ongoing filings to maintain full compliance.

Can a non-resident corporation claim tax deductions in Canada?

Yes, eligible business expenses related to Canadian operations can be deducted, including salaries, office costs, and professional fees. Gondaliya CPA ensures all deductions are correctly applied to minimize taxable income while adhering to CRA guidelines.

Do non-resident corporations need a Canadian office to file taxes?

No physical office is required, but the CRA considers any permanent establishment (like a branch or agent) when assessing tax obligations. Gondaliya CPA evaluates your business structure to determine your filing requirements and permanent establishment exposure.

How does Canada’s tax treaty network affect non-resident corporations?

Canada has tax treaties with many countries to avoid double taxation. Gondaliya CPA coordinates with foreign advisors to ensure your corporation benefits from treaty provisions, reducing unnecessary withholding taxes and optimizing overall tax planning.

What are the penalties for late filing or non-compliance?

The CRA can impose significant penalties, interest on unpaid taxes, and increased scrutiny for late or inaccurate filings. Gondaliya CPA helps non-resident corporations stay compliant and avoid costly penalties by managing deadlines and accurate filings.

Can non-resident corporations have Canadian employees?

Yes. Employing staff in Canada requires payroll registration, remittance of income taxes, and adherence to employment standards. Gondaliya CPA supports payroll setup and ensures ongoing compliance for non-resident corporations.

How do I schedule a consultation?

You can schedule a free consultation call directly through our website, or contact us via our Contact Us page, and our team will reach out to discuss your business needs.

Meet Your Non-Resident Corporation Experts

Sharad Gondaliya, CPA

Bio Principal 647-212-9559 sharad@gondaliyacpa.ca

Vandana Goel, CPA

Bio Accounting Specialist 647-250-0242 vandana@gondaliyacpa.ca

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10 Smart Non-Resident Corporation Tax Strategies That Save Money

Determine Permanent Establishment First

Your non-resident corporation only pays Canadian corporate tax on income attributable to a permanent establishment in Canada under ITA section 253. If your non-resident corporation has no fixed place of business, employees, or agents concluding contracts in Canada, you may owe only Part XIII withholding tax — not a full T2 corporate return — saving your non-resident corporation the general corporate tax rate entirely.

Register the Correct Entity Structure

Your non-resident corporation can operate in Canada through extra-provincial registration of your foreign entity or by incorporating a Canadian subsidiary. Each structure has different tax consequences for your non-resident corporation — branch profits tax versus dividend withholding on repatriation. Choosing the wrong structure for your non-resident corporation costs thousands annually in unnecessary tax leakage.

File T2 Returns by the Deadline

Your non-resident corporation's T2 return is due six months after the fiscal year-end. Late filing triggers a 5% penalty on unpaid tax plus 1% per month for up to 12 months. Even if your non-resident corporation has no tax owing, CRA still assesses late-filing penalties on nil returns — filing your non-resident corporation T2 on time avoids this entirely.

Apply Tax Treaty Benefits

Canada's tax treaties may reduce or eliminate Canadian tax on your non-resident corporation's business profits if no permanent establishment exists. Your non-resident corporation must claim treaty benefits on the T2 return by completing Schedule 91 and disclosing the treaty country. Failing to claim treaty protection on your non-resident corporation's T2 means CRA taxes at the full 25% branch tax rate.

Register for GST/HST When Required

If your non-resident corporation makes taxable supplies in Canada exceeding $30,000 in four consecutive quarters, GST/HST registration is mandatory. A registered non-resident corporation can recover ITCs on Canadian expenses — rent, professional fees, supplies — offsetting the HST collected. Late GST/HST registration for your non-resident corporation triggers back-assessed HST plus penalties from the date registration was required.

Set Up CRA Program Accounts Correctly

Your non-resident corporation needs a Canadian business number with the correct CRA program accounts — RC for corporate tax, RT for GST/HST, and RP for payroll if you have Canadian employees. Missing a program account for your non-resident corporation means unfiled returns CRA does not know to expect — until they audit and assess penalties retroactively on every missed filing period.

Maintain Canadian-GAAP Books

Your non-resident corporation must maintain financial records that comply with Canadian accounting standards for its Canadian operations. CRA can deny deductions on your non-resident corporation's T2 return if expenses are not supported by proper Canadian-format books and records. Keeping monthly bookkeeping current for your non-resident corporation prevents year-end reconstruction costs and audit exposure.

Deduct Branch Operations Expenses

If your non-resident corporation operates as a Canadian branch, all expenses directly attributable to earning Canadian income are deductible on the T2 return — rent, salaries, professional fees, insurance, and allocated head office overhead. Many non-resident corporations miss the head office overhead allocation, leaving legitimate deductions unclaimed that directly reduce Canadian corporate tax owing.

Manage Intercompany Transfer Pricing

If your non-resident corporation transacts with its Canadian branch or subsidiary, CRA requires arm's length transfer pricing under ITA section 247. Non-compliant transfer pricing for your non-resident corporation triggers reassessments plus a 10% penalty on the adjusted amount. Documenting transfer pricing policies for your non-resident corporation before filing prevents CRA from reallocating profits and assessing penalties.

Withhold on Payments to Non-Residents

If your Canadian branch or subsidiary pays management fees, royalties, or dividends to the non-resident parent corporation, 25% Part XIII withholding tax applies unless a treaty reduces the rate. Failing to withhold and remit on payments from your non-resident corporation's Canadian operations makes the Canadian entity liable for the tax plus compound interest from the original payment date.