Instructions for insurance premium tax return of taxable premiums
All insurance companies licensed in B.C. must file the Insurance Premium Tax Return of Taxable Premiums.
Complete your tax return
For help completing your tax return, review the information you need to provide in the following sections:
- Corporation Details
- Calculation of Tax on Life and Health Premiums
- Calculation of Tax on Property and Automobile Premiums
- Calculation of Tax on Other Premiums
- Summary
Corporation Details
Box 002: Full Legal Name
Enter the corporation name as it appears on your incorporation certificate.
Box 011: Mailing Address
Only complete this field if:
- this is the first time you’re filing the tax return, or
- your address has changed
Box 001: Business Number
Enter the corporation’s nine-digit Business Number (BN) that identifies your business for income tax purposes.
Box 003: Account Number
Enter your Insurance Premium Tax (IPT) account number.
Ensure your account number is recorded on all pages and schedules submitted.
Box 020 and 024: Telephone Number & Email Address
Enter the telephone number and email address for the person you want our office to contact if we need to verify information on your account.
Box 076: Is this a taxpayer requested adjustment to the return?
Indicate if you are requesting an adjustment to a return that has already been filed.
Box 060 and 061: Start and End of Tax Year
Enter the start and end date of the tax year this return is being filed for.
Box 062: Is this the first year of filing?
Indicate if this the first year you’re filing.
Box 070: Incorporation Date
If this is the first time you’re filing the tax return indicate the date of incorporation.
Box 071: Amalgamation Date
If this is the first return of an amalgamated corporation, enter the date of amalgamation and submit the articles/certificate of amalgamation.
Box 075: Is this corporation exempt from tax?
Indicate if the corporation is exempt from tax. If it is, explain why it is exempt.
Box 078: Is this the final taxation year?
Indicate if this is the final year the corporation will be operating as a licensed insurer. If it is, explain why.
Calculation of Tax on Life and Health Premiums
In this section you will report on premiums for life and health contracts.
Box 109: Gross Premiums received or receivable for life, accident, sickness and loss of salary or wages
Enter the gross premiums received or receivable for life insurances, accident and sickness insurance and insurance for loss of salary or wages.
Include premiums from:
- a reinsurance contract
Don't include exempt premiums if they were:
- as consideration for annuity contracts
- for medical services or health care under a medical services or health care plan approved by regulation
Deduct exempt premiums from:
- premiums on reinsurance from licensed companies in Box 141
Box 141: Premiums on reinsurance from licensed companies
If you’re claiming a deduction for premiums on reinsurance from licensed companies, enter the gross amount of premiums you’ve assumed.
You also need to attach a schedule detailing the company name and amount of premiums you’ve assumed from each company.
Box 142: Premiums returned to policy holders
Enter the amount of taxable premiums returned to policy holders by the insurer in the tax year for life insurance, accident and sickness insurance and insurance for loss of salary or wages.
Box 143: Dividends to policy holders
Enter the total cash value of dividends paid or credited in the tax year by the insurer to policy holders under contracts of life insurance, accident and sickness insurance, and insurance for loss of salary or wages in respect of persons resident or property situated in B.C.
Calculation of Tax on Property and Automobile Premiums
In this section you will report on premiums for property and automobile contracts.
Box 111: Gross premiums received or receivable for property and automobile insurance
Enter the gross premiums received or receivable for property and automobile insurance.
Include premiums from:
- a contract of marine insurance
- marine insurance for pleasure craft
- a reinsurance contract
Deduct exempt premiums from:
Box 145: Premiums on reinsurance from licensed companies
If you’re claiming a deduction for premiums on reinsurance from licensed companies, enter the gross amount of premiums you’ve assumed.
You also need to attach a schedule detailing the company name and amount of premiums you’ve assumed from each company.
Box 146: Premiums returned to policy holders
Enter the amount of taxable premiums returned to policy holders by the insurer in the tax year for property and automobile insurance.
Box 147: Dividends to policy holders
Enter the total cash value of dividends paid or credited in the tax year by the insurer to policy holders for property or automobile insurance contracts in respect of persons resident or property situated in B.C.
Box 148: Marine premiums other than pleasure craft
Premiums received for a marine insurance contract that is not for pleasure craft are exempt.
- For details, refer to Marine Insurance Exemption
Calculation of Tax on Other Premiums
In this section you will report on premiums for other types of contracts.
Box 113: Gross Premiums received or receivable other than reported above
Enter the gross premiums received or receivable that weren’t reported in Box 109 or Box 111.
Include premiums from:
- a reinsurance contract
Deduct exempt premiums from:
- premiums on reinsurance from licensed companies in Box 150
Box 150: Premiums on reinsurance from licensed companies
If you’re claiming a deduction for premiums on reinsurance from licensed companies, enter the gross amount of premiums you’ve assumed.
You also need to attach a schedule detailing the company name and amount of premiums you’ve assumed from each company.
Box 151: Premiums returned to policy holders
Enter the amount of taxable premiums returned to policy holders by the insurer in the tax year for insurance that hasn’t already been deducted in Box 142 and Box 146.
Box 152: Dividends to policy holders
Enter the total cash value of dividends paid or credited in the tax year by the insurer to policy holders for an insurance contract (other than already deducted in 143 and 147 above) in respect of persons resident or property situated in B.C.
Summary
This section summarizes the insurance premium tax payable. You will need to complete the other sections before completing this section.
Box 770: Tax Due
Enter the balance of tax payable or tax refundable after subtracting the total previous payments (Box 846) from the amount of tax payable calculated (Box 844).
If there is an amount refundable, enter as a negative.
Box 898: If Payment Due
If there is a balance of tax payable (Box 898 is positive), enter the amount of the cheque attached to the return.
If your payment has been sent under separate cover or is postdated, enter NIL.
Box 894: If Overpayment
If there is a refund of tax (Box 898 is negative), indicate if this amount is to be refunded or applied to the subsequent tax year.
If neither box is completed, the overpayment will be refunded.
Submit your tax return
You can submit your tax return, payment and supporting documents:
