File and pay your insurance taxes

If you have an extended contract and the term of your insurance policy is less than two years, the tax return is due within 90 days of the contract start date. Tax must be paid on the total B.C. premium. 

If the term of your insurance policy is two years or longer, you may choose to: 

• File the return and pay tax on the total B.C. premium within 90 days on the contract initial start date, or
• Pay tax based on an annualized amount of the total B.C. premium. This means the total can be pro-rated into equal annual amounts. The first return and tax remittance are due within 90 days of the initial contract start date. Subsequent year returns and tax remittances are due within 90 days of the contract anniversary date

If you have an instalment premium contract, you must file a return and pay tax on the total annual B.C. premium within 90 days of the contract start date. 

See estimated contracts if you do not know the annual premium at the start of the contract. 

If you have an adjustable contract, you pay a fixed premium at the start of the contract. At the end of the contract, the premium may be adjusted based on various criteria. 

You are required to file an initial return along with the tax remittance based on the fixed premium.

At the end of the contract, file an amended return for either increased premiums or a refund if applicable.

Increased premium

If you have an increased premium at the end of your contract, the amended return is due within 90 days of the final billing date (the invoice date of the premium adjustment).

Supply a copy of the adjustment invoice with your return to confirm.

Interest will apply to the increased tax due if not paid by the amended return due date (90 days from the final billing date). Interest is accrued based on the due date for the amended return, not the due date of the initial return.

Reduced premium

If you have a reduced premium at the end of your contract, the amended return may be filed any time after the final billing date (the invoice date of the premium adjustment).

For some contracts, the actual annual premium amount may not be known at the start of the contract. For example, the actual premiums may be based on production volume and determined at the end of the contract.

In these cases, file an initial return within 90 days of the contract start date, with tax remittance based on a best estimate of the total annual B.C. premiums.

At the end of the contract, file an amended return for the actual B.C. premiums for either increased premiums or a refund if applicable.

Estimated contract with an increased premium

If you have an increased premium at the end of your contract, the amended return is due within 90 days of the final billing date (the invoice date of the premium adjustment).

Supply a copy of the adjustment invoice with your return to confirm the increased premium amount and final billing date.

Interest will apply to the increased tax due if not paid by the amended return due date (90 days from the final billing date). Interest is accrued based on the due date for the amended return, not the due date of the initial return.

Estimated contract with a reduced premium

If you have a reduced premium at the end of your contract, you may file an amended return any time after the final billing date (the invoice date of the premium adjustment).