About Insurance Premium Tax

The Insurance Premium Tax is a tax on insurance premiums under contracts that insure residents or property located in British Columbia.

Any resident of B.C. who insures residents or property located in B.C. through an unlicensed insurer must pay tax on the premium paid.

An unlicensed insurer is an insurer who has not been authorized under the Financial Institutions Act to carry on insurance business in the province. The Financial Institution Commission (FICOM) maintains a list of insurers who are authorized under the FIA. To obtain a copy of the list, contact FICOM or visit their website at www.fic.gov.bc.ca (opens in new window).

If insurance is purchased from an unlicensed insurer, the purchaser of the insurance must pay Insurance Premium Tax.

If a non-resident of British Columbia enters into a contract with an unlicensed insurer to cover risks related to a resident of British Columbia, the resident is responsible for filing a return and paying the tax.