News and Insights

Changes to the Quebec Tax on Insurance Premiums Announced

Tax Development Dec 01, 2015

In June 2015, the Quebec Ministry of Finance issued Information bulletin 2015-4 to present its position on the tax measures introduced by the 2015 federal budget, which included clarification on the treatment of certain private prescription drug insurance plans.  As a result of this position, on November 30th, Revenue Quebec issued a statement with respect to modifications to the Quebec tax on insurance premiums (“TIP”), such that all premiums payable for individual insurance policy contracts will receive equivalent tax treatment as premiums paid for insurance provided to persons under a group insurance plan. Therefore, as of January 1, 2016, TIP will apply to premiums for individual insurance policies of persons that are payable under any individual insurance contracts referred to in section 42.2 of the Act respecting prescription drug insurance, on the basis that said contracts are comparable to group insurance contracts.

Further information on these changes to Quebec’s TIP may be found on the province’s website at:

RQ - Individual Policies of Insurance of Persons: Change Made to the Tax on Insurance Premiums System

Information bulletin 2015-4 can be found using the following link: 

QC - Information Bulletin 2015-4