I-3 - Taxation Act

Section 1167 Disposition versions

2021-01-01

1167. Every insurance corporation carrying on business in Québec, except that mentioned in paragraph b of section 998, shall pay for each 12-month period, as tax on capital, on every premium payable to the corporation or its agent with respect to its business in Québec other than an annuity contract, except on any reinsurance premium paid to the corporation by another insurance corporation, a tax equal to 3% of the premium payable.

The tax payable by an insurance corporation, other than such a corporation to which section 61 of the Act respecting international financial centres (chapter C-8.3) applies, shall not be less than

(a)  $500 in the case of marine insurance corporations;

(b)  $200 in the case of reciprocal or mutual insurance corporations;

(c)  $600 in the case of life insurance corporations, corporations transacting both in marine insurance and another kind of insurance except life insurance, and in the case of any other insurance corporation.

For the purposes of this section, any premium due in respect of the following is deemed to be a premium payable with respect to business in Québec:

(a)  the insurance of a person resident in Québec if the person is resident in Québec at the time the premium falls due;

(b)  the insurance of property situated in Québec if the property is situated in Québec at any time during the term of the insurance contract;

(c)  liability insurance subscribed by an underwriter resident or having an establishment in Québec, where the insurance covers in whole or in part the realization of a risk in Québec.

Finally, where a contract of insurance relates to property that is an automobile within the meaning of the Automobile Insurance Act (chapter A-25) and gives rise, in respect of a period, to a premium payable to an insurance corporation or its agent with respect to its business in Québec, the premium payable is deemed, for the purpose of computing the tax provided for in its respect under the first paragraph, to be equal to such proportion of the amount of direct written premiums of the insurance corporation for the period relating to the aggregate of such contracts of insurance, as is represented by the ratio, established in respect of the period and without reference to this paragraph, between the premium payable and the aggregate, for all such contracts of insurance, of premiums payable to the insurance corporation or its agent with respect to its business in Québec.

1972, c. 23, s. 877; 1973, c. 17, s. 136; 1980, c. 13, s. 118; 1991, c. 8, s. 104; 1993, c. 64, s. 200; 1995, c. 1, s. 197; 1997, c. 3, s. 69; 1997, c. 85, s. 320; 1999, c. 86, s. 98; 2002, c. 9, s. 135; 2015, c. 24, s. 159; 2019, c. 14, s. 461.

2015-10-26

1167. Every insurance corporation carrying on business in Québec, except that mentioned in paragraph b of section 998, shall pay for each 12-month period, as tax on capital, on every premium payable to the corporation or its agent with respect to its business in Québec other than an annuity contract, except on any reinsurance premium paid to the corporation by another insurance corporation, a tax equal to 3% of the premium payable.

Subject to the third paragraph, the tax payable by an insurance corporation shall not be less than

(a)  $500 in the case of marine insurance corporations;

(b)  $200 in the case of reciprocal or mutual insurance corporations;

(c)  $600 in the case of life insurance corporations, corporations transacting both in marine insurance and another kind of insurance except life insurance, and in the case of any other insurance corporation.

The second paragraph does not apply to

(a)  a corporation to which section 61 of the Act respecting international financial centres (chapter C-8.3) applies; and

(b)  a corporation whose operations consist solely in carrying on eligible activities, in respect of a major investment project relating to a recognized business of the corporation, in its eligibility period in relation to the recognized business.

For the purposes of this section, any premium due in respect of the following is deemed to be a premium payable with respect to business in Québec:

(a)  the insurance of a person resident in Québec if the person is resident in Québec at the time the premium falls due;

(b)  the insurance of property situated in Québec if the property is situated in Québec at any time during the term of the insurance contract;

(c)  liability insurance subscribed by an underwriter resident or having an establishment in Québec, where the insurance covers in whole or in part the realization of a risk in Québec.

Finally, where a contract of insurance relates to property that is an automobile within the meaning of the Automobile Insurance Act (chapter A-25) and gives rise, in respect of a period, to a premium payable to an insurance corporation or its agent with respect to its business in Québec, the premium payable is deemed, for the purpose of computing the tax provided for in its respect under the first paragraph, to be equal to such proportion of the amount of direct written premiums of the insurance corporation for the period relating to the aggregate of such contracts of insurance, as is represented by the ratio, established in respect of the period and without reference to this paragraph, between the premium payable and the aggregate, for all such contracts of insurance, of premiums payable to the insurance corporation or its agent with respect to its business in Québec.

1972, c. 23, s. 877; 1973, c. 17, s. 136; 1980, c. 13, s. 118; 1991, c. 8, s. 104; 1993, c. 64, s. 200; 1995, c. 1, s. 197; 1997, c. 3, s. 69; 1997, c. 85, s. 320; 1999, c. 86, s. 98; 2002, c. 9, s. 135; 2015, c. 24, s. 159.

2006-03-01

1167. Every insurance corporation carrying on business in Québec, except that mentioned in paragraph b of section 998, shall pay for each period of 12 months, as tax on capital, on every premium payable to the corporation or its agent with respect to its business in Québec other than an annuity contract, except on any reinsurance premium paid to the corporation by another insurance corporation, a tax equal,

(a)  in the case of insurance relating to the life, health or physical well-being of the insured, to 2% of the premium payable;

(b)  in all other cases, to 3% of the premium payable.

Subject to the third paragraph, the tax payable by an insurance corporation shall not be less than

(a)  $500 in the case of marine insurance corporations;

(b)  $200 in the case of reciprocal or mutual insurance corporations;

(c)  $600 in the case of life insurance corporations, corporations transacting both in marine insurance and another kind of insurance except life insurance, and in the case of any other insurance corporation.

The second paragraph does not apply to

(a)  a corporation to which section 61 of the Act respecting international financial centres (chapter C-8.3) applies; and

(b)  a corporation whose operations consist solely in carrying on eligible activities, in respect of a major investment project relating to a recognized business of the corporation, in its eligibility period in relation to the recognized business.

For the purposes of this section, any premium due in respect of the following is deemed to be a premium payable with respect to business in Québec:

(a)  the insurance of a person resident in Québec if the person is resident in Québec at the time the premium falls due;

(b)  the insurance of property situated in Québec if the property is situated in Québec at any time during the term of the insurance contract;

(c)  liability insurance subscribed by an underwriter resident or having an establishment in Québec, where the insurance covers in whole or in part the realization of a risk in Québec.

In addition, insurance relating to the physical well-being of the insured means a contract of insurance under which the insurer undertakes to indemnify the insured otherwise than in a manner accessory to a contract of damage insurance for any injury sustained by the latter caused by an accident.

Finally, where a contract of insurance relates to property that is an automobile within the meaning of the Automobile Insurance Act (chapter A-25) and gives rise, in respect of a period, to a premium payable to an insurance corporation or its agent with respect to its business in Québec, the premium payable is deemed, for the purpose of computing the tax provided for in its respect under the first paragraph, to be equal to such proportion of the amount of direct written premiums of the insurance corporation for the period relating to the aggregate of such contracts of insurance, as is represented by the ratio, established in respect of the period and without reference to this paragraph, between the premium payable and the aggregate, for all such contracts of insurance, of premiums payable to the insurance corporation or its agent with respect to its business in Québec.

1972, c. 23, s. 877; 1973, c. 17, s. 136; 1980, c. 13, s. 118; 1991, c. 8, s. 104; 1993, c. 64, s. 200; 1995, c. 1, s. 197; 1997, c. 3, s. 69; 1997, c. 85, s. 320; 1999, c. 86, s. 98; 2002, c. 9, s. 135.