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Tax Alert – Canada Alberta – Authorities Mandate Electronic Filing of Insurance Premium Tax (IPT)

Alberta published a Corporate Tax Act special notice on 11th of January 2022 to mandate electronic filing of IPT.

With effect from 1st of January 2022, for licensed insurers, IPT returns for taxation years ended after 31st of December 2021 must be filed electronically with the Tax and Revenue Administration (TRA) through the TRA’s online portal TRACS. All other requirements remain unchanged.

As of 1st of April 2016, the insurance premium tax rate is 4% on most contracts of insurance. A reduced rate of 3% is applicable to premiums receivable on contracts of life, accident and sickness insurance. The tax return and payment are carried out annually, on or before the 75th day following the respective taxation year. A return filed using TRACS is considered filed on the date it is submitted through TRACS.

This change has been updated on the IPT Lookup and Tax Calculator.

As always, if you have any questions or comments please do not hesitate to get in touch with a member of the team at insurance@avalara.com

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