International IPT News

Below are only some highlights of the latest developments in global insurance premium tax.  All our news is now held on our IPT Quote, the markets' first online global premium tax calculation tool. 

Click here to read about IPT Quote, the only global insurance premium tax calculator, and how it can save you money.

AUG 10 - peru

Potential cut in VAT, charged on insurance contracts.

AUG 10 - Cayman Islands

Potential new tax to be implemented on premiums.

Jul 10 - Pakistan

Federal Excise Tax on insurance premiums has risen 1%.

Jul 10 - France

The National Guarantee Fund levy is rising.

Jul 10 - Italy

There are new disclosure requirements being introduced for insurers.

Jun 10 - bulgaria set to introduce insurance premium tax

As first reported by TMF in May, Bulgaria has formalised plans to introduce insurance premium tax.  This includes premiums from Freedom of Servcies insurers located outside of the country.  The new rate will be 2%.  Life and Reinsurance is set to be exempted.  Click here for an update from TMF Bulgaria.

Jun 10 - UK increases Ipt by 1%

Click here to read about the Emergency Budget increase.

May 10 - SPain new parafiscal charges

There has been an update on charges on certain insurance lines.

May 10 - philippines increases insurance taxes

There are advanced proposals to raise VAT, liable on insurance premiums, from 12% to 15%. 

Apr 10 - Ireland threat of 2% insurance levy increase

Following the placing into administration last week of Quinn Insurance, Ireland's second largest insurer, a potential 2% increase in the Government Levy on insurance premiums has been suggested to cover the cost of unmet claims.  This comes on top of a 1% increase to 3% in June 2009.  It has been suggested that health, travel, marine and aviation cover will be spared from this increase.

Apr 10 - bulgaria threatens insurance premium taxes

As part of measures to cut down on the avoidance of taxes by foreign insurers, the Bulgarian authorities have floated the idea of a 10% tax on all insurance premiums.  It is not clear if this will apply to foreign Freedom of Services insurers.  A 2% increase in VAT is also proposed.

Apr 10 - new zealand fire service levy

The insurance industry and fire service have proposed a reform of the Fire Service Levy, chargeable on insurance premiums.

mar 10 - uk insurance premium tax changes

There have been a number of changes to the UK's IPT regime, including:
- modifications of the closure of the IPT splitting regime loophole (Homeserve case) to exclude personal insurance
- IPT has now been brought into the same revised documentation retention requirements as VAT
- increased penalty regime

Mar 10 - Panama stamp duty on insurance

Stamp duty, which is charged on insurance, is to be overhauled.

Mar 10 - US Non-resident reinsurers tax

Proposal for an increase in taxes on non-resident reinsurers.

Mar 10 - Germany fire Brigade charges

The Fire Brigade charge in Germany has been split to allow for better allocations.

feb 10 - EGypt withholding Tax on insurance

The requirements on withholding tax, charged on insurance in some circumstances, has been modified.

feb 10 - ireland insurance levy

The Life insurance levy payment is being brought forward.

feb 10 - France Insurance premium tax requirements

There are new requirements for insurers seeking IPT registration with the French tax office.

jan 10 - ireland increases insurance taxes

There has been an increase in the health insurance levy.  It has risen from Euro160 to Euro185 per adult subscriber.

jan 10 - singapore new insurance levy proposed

Plans have been drawn up for a new levy to cover the collapse of life or accident & health insurers.

JAN 10 - Australia Insurance Tax Proposals

Proposals have been put forward for the scrapping of the Fire Brigade Charge and shake-up of the States' insurance taxes.

dec 09 - finland changes reporting deadlines

The deadlines for filing IPT returns in Finland have been brought forward for both paper and electronic returns.

DEC 09 - uk ipt loophole closed

The Chancellor has closed the tax loophole which allowed a separate administrative contract on personal lines insurance to be IPT exempt.  This follows the loss, in the High Court, of the Homeserve case by HMRC in June this year.  As an unintended consequence, insurance brokers now face extensive reporting requirements.

Dec 09 - french parafiscal charges changed

There will be a change in the calculation of GAREAT on French terrorism risks from 1 Jan 2010.

Dec 09 - austrian non-admitted insurance changes

The rules have changed for non-authorised insurers active in Austria.

dec 09 - belarus taxes on insurance

There are changes to withholding taxes for insurance and reinsurance.

dec 09 - australian parafiscal charge cut

There is a reduction of the Victoria Fire Service Levy.

dec 09 - india insurance stamp duty

There is a proposal for a sharp increase in Stamp Duties on life insurance.

NOV 09 - mexico increases TAX on insurance premiums

The Mexican authorities have been forced into increasing VAT from 15% to 16% to help cope with dwindling oil revenues.  VAT is levied in insurance premiums.

nov 09 - china may look to tax non-admitted insurers

The State authorities issue a guidance notice stating that income / withholding tax is due on insurance premiums written in China by non-admitted insurance carriers.

oct 09 - uganda VAT ON INSurance

The tax authority has withdrawn VAT on insurance

OCT 09 - Hungary new insurance levy

Details of the calculations for the new Parafiscal Charge on motor insurance are now available

OCT 09 - USA NON-ADMITTED INsurance premium tax

The House of Representatives has passed the Nonadmitted and Reinsurance Reform Act. This allows risk managers to tap the nonadmitted market from the outset and standarise surplus lines tax calculations.

SEP 10 - Finland increases ipt to 23% in 2010

The Finnish government has proposed a 1% increase in VAT from July 2010.  There will be a similar increase in insurance premium tax.

Sep 09 - USA insurance tax increases

New Jersey is increasing surplus lines taxes.

Sep 09 - Australia parafiscal charge changes

There has been a sharp increase in the fire service levy and linked stamp duty.

Sep 09 - Israel insurance charge increase

Following the recent VAT increase, there is a corresponding insurance levy rise.

Sep 09 - New Zealand life changes

Proposals on increases in life insurance taxes expected to be ratified this month.  

Aug 09 - Australia insurance stamp duty refunds

Following a recent tax case, there is the potential for insured parties to reclaim stamp duty on non-Life policies in New South Wales and other territories.

Aug 09 - Taiwan insurance taxes

The Tax Reform Committee is proposing taxing income on investment-linked life insurance products.

Aug 09 - US proposes new insurance premium tax

As part of the Obama health reforms, the Senate Finance Committee is reviewing proposals for IPT on high-cost healthcare plans to be met by insurers. 

Jul 09 - Further Spanish IPT cuts

The Fondo del Consorcio de Compensacion de Seguros para la liquidacio is to be cut.  Also, the Fondo Nacional de Garantia on hunting and compulsory travel insurance are to be abolished.

Jul 09 - Georgia abolishes withholding tax

As part of a wider tax reform, Georgia has scrapped withholding taxes (income taxes) on all insurance and reinsurance.

Jun 09 - Spanish IPT changes

The National Guarantee Fund or Fondo Nacional de Garantia is being reduced from 3% to 2%.

Jun 09 - Millions of UK IPT saved on overturned Homeserve ruling

The UK High Court handed down its ruling on the appeal of the Homeserve insurance premium tax appeal.  It found that no IPT was due on separate insurance  intermediaries' contracts.   This case was heard following the ruling at the VAT Tribunal last year that Homeserve should have charging UK IPT for the administrative role it had taken in 3rd-party insurance contracts.

Jun 09 - Philippines moves to abolishes IPT on life insurance

Documentary stamp and insurance premium tax on life insurance are being scrapped.

May 09 - Hungary clarifies IPT Parafiscal charges on aviation

Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge.

May 09 - Iceland cuts property IPT

Fire Valuation Fee has been reduced from 0.0037% to 0.00021% of the property fire insurance value for 2009. 

May 09 - Beglium IPT withdrawn on credit risks

The 9.25% insurance premium tax on credit insurance has been withdrawn.  Any payments of IPT by the insuren may be refunded.

Apr 09 - UK imposes Sarbannes-Oxley type rules on IPT

This month's UK budget imposed potential personal fines on senior accounting officers who submit incorrect insurance premium tax filings.

Apr 09 - Ireland's Government Insurance Levy increases

There has been an increase in the levy on non-Life insurance policies from 2% to 3% from 1 June 2009.  A similar levy on Life Insurance policies is to be introduced at the same time, at 1% of the gross premium.  Stamp duty remains unchanged.

Apr 09 - Croatia new insurance tax charges

In Croatia, a 10% motor third party liability risk premium will be charged for Health Insurance related to traffic accidents.

Mar 09 - Italy reduces a number of insurance taxes

The Italian Hunting Accident Victims' Fund - changed to 5% of 94% of premium from 2009.  The Road Accident Victims' Fund - changed to 5% of 94% of premium from 2009.

Mar 09 - France increases insurance levy

There has been a further increase in the French Natural Disaster Compensation Scheme (CAT NAT).  On 20th March 2009, this rose from 8% to 12%.  This charge was last increased in the summer of 2008, when it rose from 4% to 8%. 

Feb 09 - Finland Insurance Levy on Motor

The Finish authorities have confirmed that the Traffic Safety Charge for 2009 will be Euro 7.2 million.  This will be collected from motor insurers based on their share of motor insurance premiums.  

Feb 09 - Poland motor liability exempt from Parafiscal Charge

In Poland, motor liability insurance is now exempt from the Fire Brigade Tax from 2009.  

Feb 09 - Sweden Life Insurance tax changes

Swedish Group Life insurance from either Swedish or foreign insurers is exempt from IPT.

Feb 09 - Greece Stamp Duty reform underway

On 5 February, the Greek Parliament passed a draft bill abolishing Stamp Duty on Life and Damage insurance from 1 January 2009. The law is not yet in force as this change has not yet been published in the Government Gazette. It is anticipated that Greek Stamp Duty will be scrapped on all other classes of insurance from 1 January 2010.

Feb 09 - Italian Life Insurance simplifications

Paperwork requirements on Life Insurers is being reduced.

Jan 09 - French insurance tax increases

Taxes on complementary health insurance companies (including mutual and providents) is rising from 2.5%. 

Jan 09 - UK IPT captive case review

A tax tribunal is undertaking a fresh review of the DSG International (old Dixons Group) captive IPT case.

Jan 09 - Luxembourg IPT changes

From the start of 2009, international shipping vessels registered in Luxembourg are IPT exempt.

Jan 09 - Romania cuts insurance levy

From 1st Jan, the supervisory levy was cut to 0.4% of the gross premiums.

Dec 08 - Spanish IPT cut

The temporary cut in Spanish insurance premium tax of 75% on public transport had been re-introduced.  This was last applied in 2006.  It has now been extended to all insurance for 2008 and 2009.

Dec 08 - Portugal insurance levy increase

INEM, the Medical Emergency Services Fund, will increase from 1% from 1st Jan 2009.  This Parafiscal Charge relates to life, sickness, labour, accident, personal accident, car and hunt cover. 

Nov 08 - Ireland IPT new levy on health insurers

To fund new tax reliefs on health care, the Finance and Health Ministries have announced a new levy on health insurance providers.  This will be calculated on a per subscriber basis - Euro 160 per adult.  Note that this levy is on the insurance provider.  It will therefore be up to the market to determine how much will be passed onto the subscribers.

Nov 08 - French IPT confirmation of ACOSS changes

The Parafiscal tax for Securité Sociale is no longer under the responsibility of ACOSS.  Instead, it has been transfered to URSSAF 67307 SCHILTINGHIEM.  URSSAF is Union de Recouvrement de la Sécurité Sociale et des Allocations Familiales.   The filings have been changed too.

Nov 08 - Philippines insurance stamp duty

The stamp duty charges on health and accident policies issued by non-life insurers have been confirmed at PHP 0.50 on each PHP 200.  This contrasts with the higher non-life insurance policy stamp duty.

Nov 08 - French VAT on insurance promotion

In a recent tax case, the Appeal Court found that developing new client prospects should not be regarded as an exempt supply.  It is therefore subject to French VAT.

Oct 08 - Italian insurance tax changes

The latest fiscal budget is bringing in new tax increases for foreign insurance subsidiaries or branches.

Oct 08 - UK Homeserve to appeal IPT ruling

It is reported that Homeserve will challenge the recent ruling which found that IPT should be charged on 'arrangement and administration' fees.  See Sept news below.

Oct 08 - Poland set to abolish 'Religa' tax

In October 2007, the Polish tax authorities introduced a new levy on third party motor insurance to cover road accident treatment costs.  It was calculated as 12% of the insurance premium.  The insurance chamber of commerce now expects this charge to be scrapped from Jan 2009.

Sept 08 - UK IPT tax case draws in arrangement fees into Insurance Premium Tax net

In a recent Insurance Premium Tax Tribunal ruling, fees for the arrangement and administration of an insurance contract were held to constitute a taxable insurance supply, and therefore liable to IPT.  Attempts to distinguish this service from the principle insurance cover to limit the IPT were rejected.   

Sept 08 - Costa Rica allows tax relief on insurance premiums

From Sept 08, the National Insurance Institute will lose its monopoly. This means insurance premiums from other insurers will now be tax deductible.
 

Sep 08 - Italian IPT pre-payment changes

The annual pre-payment on Italy IPT is to increase from 12.5% to 14%.  For 2009, this payment is due by 30 November 2008.

Aug 08 - France IPT increases Parafiscal Charges on Insurance Premiums

The French tax authorities have increased the Natural Disaster Compensation Scheme (CAT NAT) Levy, which is charged on top of insurance premium tax on most non-Life contracts.  It has increased from 4% to 8%.

Aug 08 - Macedonia introduces supervisory levy

Following the transfer of insurance regulation from the Ministry of Finance to a new independent body, there will be a levy on insurance contracts. The amount, and basis for calculation, has yet to be announced.

Jul 08 - Barbados increases insurance premium tax rate

The latest budget has included a provision for the increase of insurance premium tax by 1%.  In addition, there will be an increase in the annual licence fee for insurers from $5,000 to $20,000

Jul 08 - New Mutual Assistance Directive covering European IPT

The EU's Mutual Assistance Directive has been updated.  This instrument provides powers for the various national tax authorities to exchange information on the activities of insurers within each other's jurisdictions.  This covers IPT and VAT.  The Directive is becoming the favoured tool of the tax authorities to check that the data submitted to them by Freedom of Services insurers properly reflects the risks entered into.
 

Jun 08 - Australia clarifies non-resident insurance rules

Non-resident insurers operating in Australia without a principle branch or office are subject to withholding tax.  In a ruling involving a Lloyd's syndicate using an Australian cover holder agent, this principle was upheld even though the agent held binding authorities for the underwriter.

Jun 08 - Greek IPT authorities to abolish Stamp Duty on Insurance Premiums

The Greek Finance Minister has announced plans for the withdrawal of Stamp Duty on Insurance Premiums.  Greek Stamp Duty on insurance contracts is levied in addition to Greek IPT and Parafiscal Charges.  The plan is to abolish Greek Stamp Duty on Life insurance from January 2009, and on non-Life insurance from January 2010.

May 2008 - Newfoundland, Canada withdraws RST

The tax office in Newfoundland has dropped the 15% Retail Sales Tax.   This will apply from 1 Jan 08; any tax collected to date will be refunded, and should be repaid to clients.

May 2008 - Bulgaria to introduce new  insurance levy

The Bulgarian tax authorities are looking at bringing in a 0.1% charge to cover natural catastrophes, including earthquake or flood damage.   This mirrors the new Romanian plans.

Apr 2008 - Sweden pension insurance changes

Freedom of Service pension insurers now have to report to the Swedish tax authorities on the values of any contracts written.  From 1st May, resident persons in Sweden will be able to deduct contributions on pension insurance contracts with European insurers.

Apr 2008 - German IPT authorities identify surety reinsurance for insurance tax

Generally, there is no IPT on reinsurance contracts.   However, this year, the German authorities has clarified that surety insurance is liable since there is no underlying insurance contract.

Apr 2008 - US clarifies foreign insurance FET exemptions

The US' Internal Revenue Service has provided guidance on the situations where a foreign insurer may be eligible for exemption for Federal Excise Tax ('FET') when the risks are reinsured with a foreign insurer not entitled to an exemption.

Mar 2008 - Appointment of Fiscal Rep no longer required in UK IPT

The UK’s 2008 budget formalised the dropping of the requirement of foreign insurers to appoint a UK fiscal representative.  For some time the UK’s tax authorities have not been insisting on a fiscal rep being in place - instead merely asking for a named, in-country agent.  After long consultation with the industry in 2007, this is now the official position.

Jan 2008 - Dutch IPT authorities raise insurance tax to 7.5%

There has been an increase in the Dutch taxes on insurance premiums.  The standard IPT rate will increase from 7% to 7.5% on all policies maturing after 1 March 2008.   This increase matches similar European-wide IPT rate increases, including the 2007 increase in German IPT from 16% to 19% for many classes.

Jan 2008 - Iceland overhauls Fire Parafiscal Charges

From 1st Jan 2008, a new Parafiscal Charge, Fire Valuation Tax, has been introduced in Iceland.  It is charged at 0.0037% of the fire insurance value of the property.   It is replacing the House Valuation Tax, which was 0.01% of the sum insured.

Jan 2008 - Portugal Motor Guarantee Fund

From the 1st Jan 2008, the calculation of the contribution to the Motor Guarantee Fund will change to 2.5% of the compulsory 3rd party liability premium plus 0.21% on the motor insurance premium.

Jan 2008 - Cyprus and Malta adopt the Euro

From the 1st Jan 2008, Cyprus and Malta will adopt the Euro.  For insurance stamp duty calculations in Cyprus, the conversion rate has been set at Euro 1.71 to the Cypriot Pound.

Dec 2007 - French Motor Insurance Parafiscal Charge Hike

The National Guarantee Fund levy, payable on motor and hunting risks, will rise from 0.1% to 0.6% from 1st January 2008.

Nov 2007 - Georgia drops 1% charge for supervisory body

The change in Georgia from the old insurance supervisor to the new FMS appears to include the elimination of the 1% Parafiscal Charge on local revenues.

Nov 2007 - UK IPT authorities apply Kvaerner ruling to foreign insurers

The UK tax authorities have attempted to apply the precedent established in the 2001 Kvaerner ruling to draw in foreign insurers for UK IPT.  In a VAT tribunal ruling HMRC relied upon the principles of the case to assess part of DSG International (the old Dixons Group).

Sep 2007 - Changes to Polish Parafiscal Charges

Motor liability contracts are to include a 12% Parafiscal Charge as contribution for medical care given at road accidents.

Aug 2007 - Decrease in Portugal's Insurance Institute Charges

The Parafiscal Charge levied by the Portuguese Insurance Institute is to be lowered from 0.25% (0.05% on Life) on all contracts down to 0.23% (0.046% on Life).

Jul 2007 - BELGIUM IPT CHANGE

From 1 May 2008, compulsory insurance coverage is required for terrorism risks excluding: certain property and standablone terrorism contracts.

Jun 2007 - Romania introduces Catastrophe Levy

A new Parafiscal Charge is being proposed in Romania to cover Catastrophic Risks.

Apr 2007 - Swedish IPT on 3rd party motor liability risks

Underwriters are now liable from 1st July to collect IPT on 3rd party motor cover on Swedish motor vehicles.  The IPT is calculated at 32% of the gross premium.

Mar 2007 - Ukraine changes Premium tax calculation

From the start of 2007, Ukrainian premium tax calculation is net of domestic reinsurance.

Feb 2007 - Romania cuts Guarantee Fund Levy

The Policyholders' Protection Fund Levy, which covers insolvency of insurance companies for all non-Life insurance, has been reduced from 1% to 0.8%.

Jan 2007 - Italy motor damage tax clarification

The Italian tax authorities have clarified that motor owner damage will be subject to the regular 12.5% IPT rate.  This overturns an earlier decree implying a separate rate of 21.25%.

Jan 2007 - Portugal IPT contribution lowered

From 1st Jan 2007, the contribution to the Portuguese Insurance Supervisory Authority was cut from 0.25% for 2006 to 0.23% for 2007. 

Dec 2006 - German IPT increase

From 1^st Jan 2007, the German insurance premium tax rate will rise from 16% to 19% on many classes.  This tracks a similar increase in the German VAT rate - now also 19% from 1st Jan 2007.  This rate applies to most classes of insurance tax - fire insurance at 11% IPT is the only major exception (there is also a Fire Brigade Parafiscal Charge to be added).

Nov 2006 - Greek IPT re-branding and rate changes

Turnover Tax (Foros Kykloyergassion) is changing its name to Premium Tax (Foros Asfalistron).  Also, IPT on fire risks is changing to 20%.

Oct 2006 - French IPT levy increase

There will be an increase in the National Catastrophe premium. This tax will increase from 2% to 4% from November 2006.   This Parafiscal Charge is levied on property insurance.

Sept 2006 - Hungary Fire Brigade Charges

From the start of 2007, Fire Brigade levies will be 1.5% of premiums paid under Freedom of Services risk insurance.

Aug 2006 - Italian Road Accident Victims' Fund

The percentage of premium used as the basis for the calculation of the Road Accident Victims' Fund is changing to 95%.

Jul 2006 - Polish Chamber of Insurance levy

The PIU's Parafiscal Charge on risk contracts is moving to 0.026% of the premium.

Jun 2006 - Spanish IPT temporary discount on public transport risks

Insurance policies covering passengers and goods on public transport during 2006 will be liable to a reduced IPT rate of 1.5%.   The normal rate is 6%.

May 2006 - Slovenian deadline changes

Fire Brigade charges are set to become due within 15 days after the end of the reporting month.

Apr 2006 - Slovenia now imposes motor insurance levy

From Mar 2006, there is a 6.5% levy on 3rd party motor liability insurance.  This is payable to the Health Insurance Institute.

Mar 2006 - Moldova increased withholding tax on reinsurance

The tax authorities have increased from 2% to 10% the withholding tax on outbound reinsurance premiums.  This applies from the start of 2006.

Jan 2006 - Belgian IPT authorities to drop requirement for a fiscal representative

In a move to help lower the cost of compliance, the Belgian authorities are no longer insisting that insurers providing FOS risk cover have to appoint a fiscal representative. Instead, they may file direct, or use local brokers.  The requirement for payments from a local Belgian bank account remains in place.

To learn more, contact our IPT experts:

iptax@tmf-group.com

+44 (0)870 067 8881