We can confirm that the Newfoundland & Labrador Department of Finance is planning to shake up various tax rates applicable to insurance business from the 1st July 2016.
Retail Sales Tax (RST) will be introduced at a rate of 15.00% applicable to Property and Casualty policies. This will apply to all policies effective from the 1st July 2016. This increase is in-line with the pending Harmonised Sales Tax (HST) increase, which is also increasing to 15.00% from 13.00% as of the 1st July 2016.
Provincial Premium Tax will increase from 4.00% to 5.00% also effective from the 1st July 2016. The existing exemptions (most notably Marine & Reinsurance) are expected to remain in place.
For any further information related to Insurance Premium Tax please do not hesitate to contact us: email@example.com