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Please make sure you view all key information in your search results before accepting a risk in the chosen territory.

Disclaimer: Crystal is provided for information purposes; it does not constitute solicitation of business and is not intended to be a substitute for appropriate professional advice. Information relating to Lloyd’s Brussels Subsidiary may be subject to regulatory approval.

Canada * Lloyd's
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Tax - Overview

Summary of taxes applicable to insurance

Lloyd's

Prince Edward Island - Provincial Premium Tax

With effect from 1 January 2017, the rate of Provincial Premium Tax has increased from 3.5% to 4%. However for life, accident and sickness insurance the rate has increased from 3.5% to 3.75%. Provincial Premium Tax is a charge on the insurer and is a deduction from gross premium, therefore underwriters should consider this rate increase when determining premiums for all new policies incepting on or after 1 January 2017.

Last updated: 17 Jul 2017

Saskatchewan - Retails Sales Tax

Saskatchewan have introduced Retail Sales Tax (SRST) at a rate of 6% which will come into effect on 1 August 2017.

The tax is a charge on the insured and is an addition to the gross premium. SRST will be due on all contracts incepting on or after 1 August 2017 with the exception of reinsurance which is exempt.

SRST should be collected and settled locally by the local Canadian intermediary. Where there is no Canadian intermediary involved in the placement it should be passed to underwriters to be settled centrally by the Lloyd’s Tax Department.

Last updated: 17 Jul 2017

Canadian Excise Tax - Form C-FET01

With immediate effect, Canadian Excise Tax must be reported to Lloyd's using the updated "direct assured" tax form, Form C-FET01. To avoid delays in processing with Xchanging, brokers are reminded to ensure the form is completed in full and only submitted if the policy satisfies the four criteria stated at the top of Form C-FET01. 

Last updated: 17 Jul 2017

Lloyd’s Tax Department has recently concluded a provincial premium tax audit with the British Columbian tax authorities, during which it was brought to our attention that the marine exemption is not being accurately applied to Canadian marine policies.

In order to address the concerns of the tax authority, all Canadian marine business will be treated as taxable unless the underwriter clearly states that it is exempt marine business on the MRC or other documentation presented to Xchanging.

Last updated: 06 Dec 2017

Saskatchewan Retail Sales Tax (SRST) - new exemptions

Confirmation has been provided by Saskatchewan Ministry of Finance that insurance premiums for the following types of insurance contracts are exempt from SRST:

  • Individual and group life insurance
  • Individual and group health, disability, accident and sickness insurance
  • Agricultural insurance including crop and livestock insurance, hail insurance and margin/income insurance (Note: agricultural property, equipment and vehicle insurance remain taxable).

The exemptions are effective immediately and extended retroactively to 1 August 2017, the date when insurance premiums became taxable in Saskatchewan.  If SRST has been paid previously on these types of insurance contracts, please contact the Lloyd's Tax Department.

Last updated: 01 Mar 2018

Newfoundland and Labrador Retail Sales Tax - Motor reductions

The Retail Sales Tax (RST) rate for automobile insurance in Newfoundland and Labrador is to be gradually reduced over the next four years, with the following reduced rates coming into effect each year:

From 1 January 2019 the rate of RST will be 13%.

From 1 January 2020 the rate of RST will be 12%.

From 1 January 2021 the rate of RST will be 11%.

From 1 January 2022 the rate of RST will be 10%.

The new rates will apply to all new policies and renewals incepting on or after the effective dates shown for each rate reduction.  Endorsements and other mid-term adjustments will be taxed at the rate charged on the original insurance policy and not the effective date of the policy change.

The rate reduction only applies to automobile risks, which include cars, taxis, buses, trucks, tractors, fleet, all-terrain vehicles, classic cars, camper units, motorcycles, motor homes, snow vehicles, trailers and other recreational vehicles.  It does not include sport watercraft.

Last updated: 18 Dec 2018