Tax on insurance premiums other than marine
Every person resident in Canada by whom or on whose behalf a contract of insurance, other than a contract of reinsurance, is entered into or renewed against a risk ordinarily within Canada at the time the contract is entered into or renewed, with an authorized insurer through a broker or agent outside Canada or placed with an unauthorized insurer, is required to pay the 10% insurance premium tax.
However, certain exceptions apply. For example, non-resident individuals, such as accredited foreign representatives, are not liable to pay the tax on insurance premiums.
Non-residents who have been charged the tax on insurance premiums may seek a refund from the Federal Government. The Canada Revenue Agency (CRA), which administers the Excise Tax Act, is responsible for processing refund applications.
About the refund process
To obtain a refund of the tax, eligible non-residents must complete the appropriate form N15 Excise Tax Act - Application for Refund/Rebate. It is not necessary to submit a copy of the insurance contract with the refund claim, however, a copy must be kept and be available to the CRA at any time upon request. Failure to do so may result in denial of request.
General enquiries regarding this tax, including questions concerning its application to categories of foreign representatives, can be directed to the Privileges and Immunities Unit of the Office of Protocol at 613-944-1159.
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