Some businesses are required to pay, by April 30, 2017, a federal tax of 10% on certain insurance premiums.
This tax can apply to businesses that have purchased insurance coverage from insurers outside Canada or were covered under a global insurance policy acquired from insurers outside Canada by a parent company in 2016. Generally, the federal tax applies where the business or individual purchases such insurance coverage for risks in Canada directly, or where the coverage is obtained on their behalf by a third party. This tax could also apply where a business has insurance coverage with an insurer licensed in Canada but the broker or agent is outside Canada.
Download this edition of the TaxNewsFlash to learn more.
© 2017 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.