Insurance Company Taxes and Levies

Insurance Company Premium Tax and Automobile Levy

Bulletin - Amendments to Premium Tax and Fire Tax Rate (Effective January 1, 2017)

Premium Tax                      

Insurers (except fraternals) are required to pay premium tax on premiums receivable for business transacted in the province.  The premium tax rates are 3.75 per cent on life and accident and sickness premiums, and 4.00 per cent for all other classes of insurance (“general”) premiums. 

Specific details on this tax may be viewed in the Premium Tax Act.

Automobile Levy

An Automobile Levy is payable by each insurer underwriting automobile insurance in the province based on their “number of earned vehicles”.  The purpose of the levy is to allow the province to recover the health care costs associated with innocent victims of automobile accidents in an efficient manner.  In return for payment of the levy an insurer is exempt from being subrogated against by the province for certain health care costs. 

Specifics details on the levy may be viewed in section 65.1 of the Insurance Act and the Automobile Levy Regulations.

Quarterly Instalments and Annual Settlement

Instalments are due on the last day of each quarter of the year.  Insurers are required to remit one quarter of the amount of premium tax and automobile levy it estimates will be payable by them for that year.  Quarterly instalment returns are available here:

Life and Accident & Sickness Quarterly Instalment Return

General Quarterly Instalment Return

An Annual Return for premium tax for the preceding year, must be filed by March 31st annually.  This return details any further amount owed to the province or refund due to the insurer for the preceding year.  Amounts owed are also due by March 31st.  Refunds are sent out to insurers in late April.  An Annual Return is available here:

Life and Accident & Sickness Premium Tax Annual Return

General Premium Tax Annual Return 

An Annual Automobile Levy Statement detailing the amount due to the province or refundable for the preceding year is mailed to insurers in late January.  Amounts owed are due by March 31st.  Refunds are sent out to insurers in late April.

Interest Penalty 

Failure to remit on an acceptable basis may result in the province levying an interest charge of six per cent per annum.

Who can I contact for more information?

Phillip McInnis
Compliance Officer
Consumer, Corporate and Financial Services
Shaw Building Centre 4th Floor
PO Box 2000
Charlottetown, PE C1A 7N8
Telephone: (902) 368-4937
Fax: (902) 368-5283
Email: pjmcinnis@gov.pe.ca

 

Published date: 
August 10, 2015
Justice and Public Safety department logo

General Inquiries

Consumer, Corporate and Financial Services Division
4th Floor, Shaw Building
95 Rochford Street
PO Box 2000
Charlottetown, PE   C1A 7N8

Phone: (902) 368-4550
Fax: (902) 368-5283

ccs@gov.pe.ca