Round up of recent changes to taxes on insurance premiums around the world. All of these changes have been or will be reflected within IPT Quote.
Italy
Insurance Premium Tax (IPT) on motor policies in Pistoia has increased from 15.5% to 16% as of 13 July 2015.
IPT on motor policies in Firenze has increased from 10.5% to 16% as of 10 July 2015.
Romania
The Policyholder Guarantee Fund contribution is no longer paid to the Autoritatea De Supraveghere Financiara (ASF). Law No. 213/2015 granted the Fund a legal status where it shall manage itself without the supervision of the ASF with effect from 24 July 2015.
Rule No. 17/2015 was published to facilitate the implementation. The Rule has emphasized that the rate of the contribution remains unchanged, where 1% is applicable to the non-life policies and 0.4% to the life policies. In addition, the creditors are not only defined as insurers established in Romania but also as their branches pursuing business in the territory of other EU member states.
San Marino
According to Delegated Decree no. 133 of 4 August 2015, insurance related to aircraft registered in the San Marino Registry is exempt from Insurance Premium Tax. This exemption is effective 4 August 2015.
Tanzania
The Tanzanian VAT Act 2014 has been passed stating that insurance premiums will be subject to VAT at the rate of 18% as of 1 July 2015.
Uganda
The Ugandan Income Tax Bill 2015 has stated that withholding tax on the payment of reinsurance premiums from a resident to a non-resident will be reduced from 15% to 10% with effect from 1 July 2015.
Zambia
The Zambian 2016 budget has laid out plans to abolish the 16% VAT rate on all non-life insurance premiums. This will be replaced with a 3% levy on insurance premiums and these changes come into effect on the 1 January 2016.
Other changes
There have also been major changes in the UK and Greek insurance tax regimes which we have highlighted in separate articles:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.