The Government of Saskatchewan will impose a 6% PST on all insurance premiums with an effective date on or after August 1, 2017. The original effective date for the application of the Provincial Sales Tax (PST) was July 1, 2017, but was extended to August 1, 2017, to provide additional time for implementation. The PST of 6 per cent impacts employers with employees in Saskatchewan and applies to the following:
- Self-insured group benefit arrangements, also known as Administrative Services Only (ASO) arrangements
- New individual permanent life insurance policies, including whole and universal life insurance, effective after July 31, 2017
- Endorsements added to insurance contracts with an effective date after July 31, 2017
PST will not apply to reinsurance, annuity contracts, contributions or premiums paid under the Canada Pension Plan, Employment Insurance Act (Canada) and The Workers Compensation Act, 2013.
The information bulletin can be read here.