Insurance Premium Sales Tax (IPST)

The Insurance Premium Sales Tax Ordinance levies taxes on all Insurance Premiums with the exception of Health & Life Insurance at a rate of 2.5%. 

All Insurance Providers are required to be licensed by the Financial Services Commission.  There are no other qualifications for registration and as such registration in mandatory through the prescribed Insurance Premium Sales Tax Registration Form.

IPST payments are due on or before the 15th of each month for the month prior.  A tax remittance form is collected from the Revenue Department for each tax period due to be paid on or before the 15th of each month for the month prior.  Failure to complete remittance and payment by the 15th will immediately result in a penalty of 10% of the tax overdue on a monthly basis for as long as the taxes remain outstanding.

Businesses are required to maintain proper books and records and are subject to period audits as taxes remitted are on a self-assessed basis.

Registrants are also required to give notice of changes to the Revenue Department including:

    • Cessation
    • Change of location
    • Change on any details on the initial application and registration forms
    • Temporary closure
    • Change of ownership

More details can be obtained from Insurance Premium Service Sales Tax Brochure or contacting the Taxpayer Services of the Revenue Department.

REMINDERS & TIPS

Use our E-services portal to beat the long lines which automatically extends your deadline to 11:59pm on the due date.

Using our E-services portal allows you access all transactions made from the time the account was created, with no need to visit or call the Department!

Here are two benefits of holding a valid Business Licence.
  • You would be in good legal standing with the Department, since it is illegal to operate in the Federation without one.
  • You would be in a better position to obtain financial assistance from lending institutions, since most institutions conduct business verification checks with the Inland Revenue Department.