Insurance premium tax exemptions for licensed insurance
You may be exempt from insurance premium tax if you:
The following licensed insurers must file a tax return, but don’t pay insurance premium tax:
- Fraternal benefit societies
- Purely mutual corporations that earn:
- 100% of their B.C. net premium income from the insurance of religious institutions, schools or charitable organizations, or
- At least 50% of their B.C. net premium income from the insurance of farm property
If you qualify, you must claim the exemption when you file the Insurance Premium Tax Return of Taxable Premiums.
The following premiums are exempt from insurance premium tax if they were received or became receivable:
- As consideration for an annuity contract
- For medical services or health care under a medical services or health care plan approved by regulation
- From another taxable insurer under a contract of reinsurance
- Under a contract of marine insurance that isn’t pleasure craft insurance
To calculate your net taxable premiums for the year, deduct the exempt premiums from the gross premiums you report when you file the Insurance Premium Tax Return of Taxable Premiums.