In an Information Notice dated March 22, 2017, issued by the Government of Saskatchewan, the government announced both an increase and expansion of the Provincial Sales Tax (PST) from 5% to 6% effective March 23, 2017. Read the notice here.
Of significance to employers with employees who reside in Saskatchewan is the expansion of the PST to include insurance premiums. This new tax applies to all insurance premiums that are due on or after July 1, 2017, regardless of when the policy was issued. This includes:
- Life Insurance
- Accidental Death & Dismemberment Insurance
- Extended Health and Dental Insurance
- Disability Insurance
- Critical Illness Insurance
PST will not apply to self-insurance and annuity contracts.
As stated in the government’s notice, the Ministry of Finance is releasing an Information Bulletin to assist in the application and collection of the PST on insurance premiums. The Bulletin is expected to be released before April 30, 2017.