Insurance supervisory levy rates have been reduced in China, as part of an ongoing strategy to lessen the tax burden on the insurance industry.
At the start of this year, China's Insurance Regulatory Commission published a notice announcing reductions in the rates of insurance supervisory levies. It's part of an ongoing strategy to relieve the Chinese insurance industry from tax burdens, in line with the government's aim of pushing forward the reform and development of the insurance industry, which has been written into the Economic Agenda of the Central Government.
This is the second cut in insurance supervisory levies in the last five years. The first reduction for levies on premiums was announced on 9 February 2012, with a retrospective effect from 1 Jan 2011. Rates were reduced from 0.16% to 0.13% for liability, credit, and short-term health insurance; from 0.17% to 0.145% for accident and property damage insurance, and from 0.08% to 0.065% for life and long-term health insurance policies.
The latest change
- For levies charged on premiums, insurance companies that write liability insurance, credit insurance and short-term health insurance are subject to a rate of 0.06%. Insurance companies that write accident insurance and property damage insurance should pay a rate of 0.08% and a rate of 0.04% is charged on companies that write life and long-term health insurance.
- For levies charged on registered capital, a rate of 0.04% is applicable to the insurance companies with a cap value of 2 million Chinese yuan. A flat rate of 20,000 Chinese yuan per year is employed on representatives of foreign insurance companies.
- Agricultural insurance and some other state-grant insurance policies are exempt from the levy. The levy regime also covers insurance brokers and intermediary entities.
The latest notice has retrospective effect from 1 January 2014. The date of payment is any day between the 15th and 31st of July each year. Insurance companies affected should have completed their returns for 2014 and 2015 by 29 February 2016.
Talk to us
Awaiting the incoming VAT implementation in China, IPT Quote, TMF Group's online calculation tool is already updating the changes for insurance supervisory levies. Broker users who create quotes involving the Chinese market will see a reduction of the tax amount on the tax schedule. Insurer users who are part of the Chinese simplified tax arrangement will see their single-combined-rate dropping accordingly.
Insurance supervisory levy rates have been reduced in China, as part of an ongoing strategy to lessen the tax burden on the insurance industry.
At the start of this year, China's Insurance Regulatory Commission published a notice announcing reductions in the rates of insurance supervisory levies. It's part of an ongoing strategy to relieve the Chinese insurance industry from tax burdens, in line with the government's aim of pushing forward the reform and development of the insurance industry, which has been written into the Economic Agenda of the Central Government.
This is the second cut in insurance supervisory levies in the last five years. The first reduction for levies on premiums was announced on 9 February 2012, with a retrospective effect from 1 Jan 2011. Rates were reduced from 0.16% to 0.13% for liability, credit, and short-term health insurance; from 0.17% to 0.145% for accident and property damage insurance, and from 0.08% to 0.065% for life and long-term health insurance policies.
The latest change
- For levies charged on premiums, insurance companies that write liability insurance, credit insurance and short-term health insurance are subject to a rate of 0.06%. Insurance companies that write accident insurance and property damage insurance should pay a rate of 0.08% and a rate of 0.04% is charged on companies that write life and long-term health insurance.
- For levies charged on registered capital, a rate of 0.04% is applicable to the insurance companies with a cap value of 2 million Chinese yuan. A flat rate of 20,000 Chinese yuan per year is employed on representatives of foreign insurance companies.
- Agricultural insurance and some other state-grant insurance policies are exempt from the levy. The levy regime also covers insurance brokers and intermediary entities.
The latest notice has retrospective effect from 1 January 2014. The date of payment is any day between the 15th and 31st of July each year. Insurance companies affected should have completed their returns for 2014 and 2015 by 29 February 2016.
Talk to us
Awaiting the incoming VAT implementation in China, IPT Quote, TMF Group's online calculation tool is already updating the changes for insurance supervisory levies. Broker users who create quotes involving the Chinese market will see a reduction of the tax amount on the tax schedule. Insurer users who are part of the Chinese simplified tax arrangement will see their single-combined-rate dropping accordingly.
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