The Government of Saskatchewan has pushed back the date for the PST application on insurance premiums from July 1 to August 1.
“The insurance industry associations have asked us for more time to implement this change and we want to ensure a smooth implementation,” Finance Minister Kevin Doherty said. “We’ve listened and have agreed to move the effective date back one month as well as update the application of PST to ensure it is applied fairly across the industry.”
The updates include:
- Applying PST to self-insured group arrangements, also known as Administrative Services Only (ASO) arrangements.
- Only new policies for individual permanent life insurance effective after July 31, 2017 will be subject to PST; policies in effect before August 1, 2017 are exempt.
- Any endorsements added to insurance contracts that come into effect before August 1, 2017 will not subject to PST.
The PST of 6% will begin August 1 for any insurance premiums that come into effect after this date for residents of Saskatchewan or if the contract is for property in the province.