Ontario Insurance Premium Tax

The Ontario Insurance Premium Tax (Premium Tax) is administered by the Ministry of Finance under the authority of the Corporations Tax Act (CTA).

For taxation years ending after December 31, 2008, corporations are required to file a harmonized T2 Corporate Income Tax return with the Canada Revenue Agency. The harmonized tax return includes the following Ontario corporation taxes:

• corporate income tax (including tax credits)
• corporate minimum tax
• capital tax
• special additional tax on life insurance corporations

However, the harmonized tax return does not include the Premium Tax. For taxation years ending in 2009 and 2010, corporations subject to Premium Tax previously filed the Insurance Premium Tax return with the ministry. For taxation years ending in 2011 and onwards, corporations will file the new CT - Insurance Premium Tax Return with the ministry.

What is subject to Ontario Insurance Premium Tax?

Premium Tax is a tax on insurance premiums for:

• people living in Ontario
• property situated in Ontario

Who is required to collect and remit Ontario Insurance Premium Tax?

Along with insurance companies, Premium Tax is also required to be collected and remitted by:

• administrators of Ontario Uninsured Benefit Arrangements
• anyone buying insurance placed with an insurer not licensed in Ontario
• reciprocal or inter-insurance exchanges

Insurance corporations carrying on a business through a permanent establishment in Ontario are liable to pay Premium Tax on all premiums under section 74 of the CTA. Other entities may also be liable to calculate, collect and remit Premium Tax under the CTA. This includes incorporated and unincorporated entities such as:

• Administrators of funded and unfunded benefit plans, also referred to as Uninsured Benefit Arrangements (section 74.2 of the CTA).
• Insurance brokers placing insurance contracts with unlicensed insurers (section 74.3 of the CTA).
• Reciprocal or inter-insurance exchanges within the meaning of the Insurance Act (section 74.4 of the CTA).

What are the tax rates for Ontario Insurance Premium Tax?

Type of Insurance	Rate
Life	2%
Accident	2%
Sickness	2%
Property	3.5%
Other	3%

How do I register for a CT - Insurance Premium Tax account?

1. Register with the Ontario Ministry of Government Services to obtain your Ontario Corporation Number.
2. Complete the Request for Registration form [PDF - 576 KB] to request an account with the Ministry of Finance.

If you have any questions please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).

How do I obtain my CT - Insurance Premium Tax Return?

After September 2011, your tax return will be issued to you and will no longer be available on the ministry website. The ministry will mail you a personalized tax return during the last month of your taxation year.

For tax returns prior to the 2011 taxation year, please contact the ministry at 1 866 ONT-TAXS (1 866 668-8297) and they will issue the appropriate return.

How do I complete my CT -  Insurance Premium Tax Return and Schedules?

Detailed instructions on completing the new CT – Insurance Premium Tax Return and Schedules can be found in the CT – Insurance Premium Tax Guide.

How do I file my new CT – Insurance Premium Tax Return?

You can file a tax return beginning with the 2009 taxation year using ONT-TAXS online. You can also continue to file a ministry issued paper return.

For taxation years prior to 2009, you are required to file a paper tax return.

You can file your return:

• online, using ONT-TAXS online
• by mail to: Ministry of Finance, 33 King Street West, PO Box 620, Oshawa ON L1H 8E9
• in person at certain ServiceOntario locations

To contact ServiceOntario:

• visit their website
• call: 416 326-1234 / 1 800 267-8097
• teletypewriter (TTY): 416 325-3408 / 1 800 268-7095
• fax: 416 325-3407

How do I register for ONT-TAXS online?

Visit ontario.ca/finance, select ONT-TAXS online and Get Started, or call us at 1 866 ONT-TAXS (1 866 668-8297).