Saskatchewan Tweaks PST for Insurance Premiums | KPMG | GLOBAL

Saskatchewan Tweaks PST for Insurance Premiums

Saskatchewan Tweaks PST for Insurance Premiums

Saskatchewan is proposing to postpone the application of PST to insurance premiums until August 1, 2017 (from July 1, 2017).

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Previously, in its 2016 provincial budget, Saskatchewan proposed to generally apply the 6% PST to all life, accident, and health insurance premiums, as well as property, vehicle, liability and casualty insurance and agricultural insurance premiums.

Saskatchewan has now announced that, following the results of consultations with insurance industry associations, it will amend these rules to:

  • Apply PST to self-insured group benefits arrangements (i.e., Administrative Services Only arrangements) 
  • Exempt from PST individual permanent life insurance policies, including whole and universal life insurance, in effect before August 1, 2017 (i.e., new individual permanent life insurance policies effective after July 31, 2017 will be subject to PST) 
  • Clarify that any endorsements added to insurance contracts with an effective date before August 1, 2017 are not subject to PST.

Saskatchewan Bill 70, which includes the original measures related to the application of PST on insurance premiums, received Royal Assent on May 17, 2017. The latest version of Bill 70 available on Saskatchewan's website does not appear to include the aforementioned changes.

For more information, contact your KPMG adviser.

Information is current to May 23, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

© 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.

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