File and pay your insurance taxes
Last updated: May 18, 2023
Licensed insurers must file the Insurance Premium Tax Return of Taxable Premiums each year. The tax return is due on March 31 for premiums that were received or became receivable in the previous calendar year.
If the amount of insurance premium tax you owed in the previous calendar year exceeded $25,000, you must make instalment payments during the tax year.
Insurance Premium Tax Return of Taxable Premiums (FIN 527)
You must include the following supporting documents with your tax return:
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A reconciliation between the Office of the Superintendent of Financial Institutions (OSFI) reports done under International Financial Reporting Standards (IFRS) and the premiums you’ve reported on your return. IFRS and insurance premium tax (IPT) have different definitions of premium
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If you’ve claimed a deduction for premiums on reinsurance from licensed insurers, a schedule detailing the company name and amount of premiums you’ve assumed
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The exhibits outlined below are based on the type of insurance you provide:
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Life
Pages 95.010L, 95.010R, 95.020L and 95.020R of OSFI return -
Canadian Property & Casualty
Page 93.30 of OSFI return P&C–1 -
A Reciprocal Exchange
Page 93.30 of OSFI return P&C–1 -
Foreign Property & Casualty
Page 67.10 of OSFI return P&C–2 -
B.C. Captive
Exhibit # 7 ‐ Premium Schedule, as filed with the BC Financial Services Authority
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Submit the printed return (PDF) Note: Available until December 31, 2023. Effective January 1, 2024, electronic filings are mandatory. |
Penalties and interest
If you do not file your insurance premium return and pay the tax by the filing due date, you’ll be charged penalties and interest.
If you miss any required instalment payment due dates or have deficient payments, you’ll be charged interest.
If penalties or interest resulted from circumstances beyond your control, you may request a waiver of penalties and interest.
If you have not filed a return or want to amend a return you have already filed, you may make a voluntary disclosure.
Payment instructions
You can pay the insurance premium tax:
Until December 31, 2023, you can also pay the insurance premium tax:
Effective January 1, 2024, electronic payments are mandatory.
Assessment and reassessment
Once we’ve reviewed your return, a Notice of Assessment will be sent to you. If there are any adjustments to the tax payable, we will provide an explanation of the adjustments with the Notice of Assessment.
We may assess or reassess your return within six years of the delivery date of your return. In cases where you have not filed a return, or you have made any misrepresentation or committed fraud in filing a return or providing information, the six year limitation period doesn’t apply.
