Insurance premiums tax

Important notices

Postal strike and TRA requirements

Regardless of a postal delay, taxpayers and other entities required to make filings and payments with Tax and Revenue Administration (TRA) are still responsible to ensure those obligations are met. All applicable penalties and interest will continue to apply.

For more information about your obligations when a mail disruption occurs including electronic filing and payments, refunds, mail, and courier options, read: Special Notice Vol.8 No.7 – Mail Disruption Contingency Plan for all Programs

Overview

Insurers must file an insurance premiums tax return and remit an amount related to all premiums written in the province during the year.

As of April 1, 2016, insurance premiums tax rates are:

• 3% on premiums receivable on contracts of life, accident and sickness insurance
• 4% on all other contracts of insurance

The insurance premiums tax program is legislated under the Alberta Corporate Tax Act.

How to register

Insurers do not have to pre-register with Tax and Revenue Administration. New insurers will be registered automatically once a licence to provide insurance in Alberta has been issued by the Superintendent of Insurance.

How to file

Step 1: Register for TRACS (TRA Client Self-Service)

• Complete the TRACS Enrolment Request to enrol in TRACS or contact TRA.
• Visit the TRACS page for more information.

Step 2: Complete your report

• Log in to your TRACS account and select ‘File a Return’.
• Returns are due on or before the 75th day following the taxation year-end.
• You will be charged a penalty if you file your return late.
• The Property and Casualty pages 67.10 and 93.30 or Life pages 95.010 and 95.020 from the fourth quarter return, submitted to the Superintendent of Insurance, may be requested by TRA.

Step 3: Remit the amount owing and view the Notice of Assessment

• Remit the amount owing on or before the 75th day following the taxation year-end.
• Interest will be charged on late remittances and will continue to accrue until the balance is paid in full.
• If there were changes made to your return or a balance is owing, a notice of assessment will be available in your TRACS account under View Assessments.

How to pay

• Visit Making payments for more information
• Related: TRA prescribed interest rates

Maintain your account in TRACS

TRA Client Self-Service (TRACS) is a secure online system for authorized clients to conveniently conduct business with TRA. Log in to your TRACS account to:

• file an Insurance Premiums Tax return
• confirm receipt of submitted returns
• submit documents
• view status of prior assessments, financial details and notices of assessment and reassessment
• access financial information and view account period balances
• update address and contact information
• delegate account access to other employees or authorized individuals
• request for waiver of penalties and interest

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

How to authorize a representative

An individual with proper authorization for the business may consent to the release of confidential information about account(s) with TRA to a specific firm and/or individual.

An individual with proper authorization for the business includes a(n):

• owner
• partner of a partnership
• corporate director
• trustee of an estate
• individual with delegated authority

Step 1: Fill out the Alberta Consent Form

• Complete the Alberta Consent (excluding Corporate Income Tax) Form (AT4931).

Step 2: Submit the consent form

• Submit your completed consent form to TRA.

Step 3: Representative receives PIN (only for TRACS access)

• TRA will review the consent form to ensure it is complete.
• TRA will issue a PIN number to the individual via secure e-mail. TRACS access can only be provided to an individual.

The representative must enter the PIN and account number to access TRACS account. See How to access TRACS for instructions.

Publications and forms

Legislation

• Alberta Corporate Tax Act and Regulations

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Contact

Connect with Tax and Revenue Administration:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]