Finance

Taxation Division 

Insurance Corporations Tax

Every insurer or special broker that provides insurance under a contract of insurance must pay the insurance corporations tax.
 
The tax rates are as follows: 
  • 2% of the insurer's net Manitoba premiums under contracts of life insurance, and contracts of accident and sickness insurance;
  • 3% of the insurer's net Manitoba premiums under other contracts of insurance (excluding property insurance).
  • 4.25% of the insurer's net Manitoba premiums under contracts of property insurance. If the insurance contract is for aircraft insurance, automobile insurance, hail insurance or insurance against loss or damage to an automobile caused by fire (if that insurance is not incidental to automobile insurance), a tax rate of 3% is to be used.
In addition to the above tax rates, an insurer must pay a tax equal to 1.25% of the net Manitoba premiums payable to the insurer in respect of certain contracts of property insurance.  These amounts are to be deposited to the Fires Prevention Fund.

Additionally, a person who enters directly into a contract of insurance with an unlicensed insurer without the transaction being facilitated through a Special Broker must pay the insurance corporations tax on that insurance contract.

The insurance purchaser's return is available by clicking on the Manitoba Tax Forms link below.
 
Manitoba Tax Publications
Manitoba Tax Forms
 
Interest Rates