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.

1. Complete your tax return
2. Submit your tax return

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 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

Do not 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:

• Premiums on reinsurance from licensed companies in Box 145
• A marine insurance contract in Box 148

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 online using eTaxBC.