Introduction of new insurance levy in Turks and Caicos |
22nd September 2011The government in the Turks and Caicos islands have announced the implementation of two new levies from September 2011, which will remain in force until they are replaced by a value-added tax (VAT), which has a planned introduction scheduled for April 2013. The two levies have been introduced as part of a temporary plan to increase tax revenues until VAT is implemented. The first levy, Insurance Premium Sales Tax (IPST), is charged at 2.5% on premiums for general insurance policies, excluding life and health insurance. IPST is to be paid to the authorities by the insurer, but the cost will be passed on to the policyholders. The second levy, Financial Services Sales Tax (FSST), is charged at 10% on all non interest-bearing services provided by banks and other financial institutions. FSST is to be paid to the authorities by the financial institutions, but the cost will be passed on to the end consumer. |
