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Date Extended, Changes Made to PST on Insurance Premiums

Released on May 17, 2017

Following discussions with insurance industry associations, the Government of Saskatchewan has extended the effective date for the application of PST to insurance premiums from July 1, 2017 to August 1, 2017.

The extension provides the industry with additional time to implement the application of PST and to address updates.

“The insurance industry associations have asked us for more time to implement this change and we want to ensure a smooth implementation,” Finance Minister Kevin Doherty said.  “We’ve listened and have agreed to move the effective date back one month as well as update the application of PST to ensure it is applied fairly across the industry.”

Updates ensuring PST on insurance premiums is applied equitably include:
  • applying PST to self-insured group arrangements, also known as Administrative Services Only (ASO) arrangements;
  • exempting PST from individual permanent life insurance policies in effect prior to August 1, 2017.  New policies effective after July 31, 2017 will be subject to PST; and
  • clarifying that any endorsements added to insurance contracts with an effective date prior to August 1, 2017 are not subject to PST.
With these updates, PST of six per cent applies to all insurance premiums with an effective date on or after August 1, 2017 sold by companies, agencies or groups where the insured person is a resident of Saskatchewan or the contract is for property located in Saskatchewan.

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For more information, contact:

Jeff Welke
Finance
Regina
Phone: 306-787-6046
Email: jeff.welke@gov.sk.ca
Cell: 306-536-1185

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