Taxable insurance contracts are defined as contracts covering risks, perils or events in Saskatchewan; however, the following types of insurance are not taxable (exempt):
- Reinsurance contracts
- Permanent life insurance contracts (if policy was in effect prior to 1 August 2017)
- Annuity insurance contracts
- Risks located outside of Saskatchewan or covering individuals not ordinarily resident in Saskatchewan
Full details of insurance subject to SRST can be found on Crystal.
SRST should be charged to the insured in addition to the premium at a rate of 6%; however, it will not be due on additional premiums charged in relation to contracts incepting prior to 1 August 2017. SRST is not claimable in respect of return premiums where the tax was not charged on the original premium.
SRST should be collected and settled locally by the local Canadian intermediary. Where there is no Canadian intermediary involved in the placement, the tax should be passed to underwriters to be settled centrally by Lloyd’s Tax Department.
For further information regarding the application of SRST, please consult Crystal or contact the Lloyd’s Tax Department.
Indirect Tax Advisor
t: +44 (0) 207 327 6836