Insurance Taxes

When you have an insurance contract to insure a resident of B.C., or a property situated in B.C., Insurance Premium Tax is charged. The tax is charged on premium payments made as consideration for the insurance contract, such as premium deposits, assessments, registration fees and contributions by members.

Insurance premium tax is charged on premiums based on the physical location of the property or the residency of the person being insured, not based on where the business of insurance is conducted. If an insurance contract covers risks located in more than one province, the portion of the premium covering risks located in B.C. is considered the BC premium.

Licensed Insurance

Most insurance products sold in B.C. are purchased from licensed insurers. When insurance is purchased from a licensed insurer, the licensed insurer must file and pay the insurance premium tax.

Unlicensed Insurance

Unlicensed insurance commonly covers hard-to-place risks. If you enter into an insurance contract with an unlicensed insurer, you’re required to file and pay insurance premium tax.

Forms & Publications

Access forms and publications related to insurance premium tax in B.C.