Manitoba Tax Changes Impact Group Insurance

Manitoba FlagThe Manitoba Government recently announced changes to the 2012 Budget which will impact insurance contracts.  Effective July 15th 2012, Retail Sales Tax (RST) will apply to certain insurance contracts at the rate of 7%.  Group Insurance contracts including the following benefits will be affected, according to the Manitoba Government Taxation division bulletin found at

Taxable Insurance Contracts:

  • Group Life
  • Optional Life
  • Dependent Life
  • Accidental Death and Dismemberment (AD&D)
  • Disability (Long and Short Term)
  • Critical Illness
  • Creditor Insurance

The following are examples of Insurance Contracts which will not be subject to RST.

Non Taxable Insurance Contracts:

  • Individual Life Insurance or Self Insured contracts (excluding group life insurance and creditor insurance).
  • Health insurance (individual or group)
  • Dental care
  • Prescription drugs
  • Vision care, ambulance, hospital rooms
  • Counseling and Therapy services and Long term care.
  • Disability, Critical Illness or Accidental Death and Dismemberment of an individual (other than under a group insurance contract).

The change to RST will apply only to employees who reside in Manitoba. i.e. for employees who reside in neighboring provinces but who work inManitoba the changes in RST will not apply.

We highly recommend that you ensure that benefit management systems will be compliant with this change.


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