Taxes now being applied to Sask. insurance premiums

As of this week, insurance premiums in Saskatchewan willhave the provincial sales tax applied, a measureintroduced in the March provincial budget.

Originally set for July 1, the effective date for applying the premiums was bumped back to Aug. 1.

The PST now applies toself-insured group arrangements (ASOs) and individual permanent life insurance policies that take effect after the deadline.

Permanent individual life insurance policies that took effect before Aug. 1 will be exempt.Any endorsements changes tolife insurance policies added to the life insurance premiums before Aug. 1 will also be exempt.

Prior to Aug. 1, Saskatchewandid not charge PST on insurance premiums.

The PST rate of six per cent will apply to all insurance premiums in the province, except for:

• Reinsurance contracts.
• Annuity insurance contracts.
• Property insurance for property located outside Saskatchewan.
• Liability insurance covering risks located outside of Saskatchewan.
• Insurance with respect to the life, health or well-being of an individual who is not ordinarily a resident in Saskatchewan.
• Insurance contracts purchased by employers covering employees who are not ordinarily a resident in Saskatchewan.
• Contributions or premiums paid under the Canada Pension Plan, Employment Insurance Act (Canada) and The Workers Compensation Act, 2013.
• Insurance contracts purchased by federal government departments and agencies.