and Revenue Administration
Corporate Tax Act
Special Notice Vol. 5 No. 43
||November 4, 2015
||Alberta Treasury Board and Finance, Tax and
|For more information:
5 No. 43 / November 2015
SPECIAL NOTICE - INSURANCE PREMIUMS TAX INCREASE
NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.
As part of Budget 2015, Alberta will increase its Insurance Premiums Tax rates under Part 9 of the Alberta Corporate Tax Act.
The Insurance Premiums Tax is imposed on premiums receivable by an insurer. Currently the tax rates are 2% on premiums receivable on contracts of life, accident and sickness insurance, and 3% on other contracts of insurance.
On April 1, 2016, these tax rates will increase one percentage point to 3% on premiums for life, accident and sickness insurance, and to 4% for other insurance.
Further details on the implementation of the increase to the tax rates will be provided once the amending legislation has been passed.
For additional general information on Alberta’s Insurance Premiums Tax, please refer to Information Circular CT-21, Insurance Premiums Tax. The circular will be updated as soon as possible to reflect the changes from Budget 2015.