Insurance premium tax: how does it work?
Insurance premium tax is imposed when an insurance contract is entered into with an insurer. The rate of the insurance premium tax is 21% of the premium. From 1 March 2011 to 1 January 2013 the rate was 9,7%.
What is insurance premium tax?
Insurance premium tax is imposed when an insurance contract is entered into with an insurer. The rate of the insurance premium tax is 21% of the premium.
Who pays the insurance premium tax?
The following persons or institutions pay the insurance premium tax: a designated intermediary, an insurer in the Netherlands or his authorised agent, an intermediary if he receives his fee from an insurer abroad and more.
Submitting a tax return
The insurance premium tax becomes due on the due date for payment of the insurance premium by the policyholder.
Rate
Starting 1 January 2013, the rate for insurance premium tax is 21% of the insurance premiums plus any separate fees paid for services linked to the insurance policy.
Further information
If you have any questions or would like to know more about insurance premium tax, please contact the Tax Information Line Non-resident Tax Issues.