Insurance Premium Tax Information Service Launched for European Companies
European companies hit by rising insurance premium rates are to be offered a new insurance premium tax information service, which will be launched by the London-based International Underwriting Association (IUA).
The IUA comments that governments in Europe are continuing to use such levies to boost public finances. Its annual ‘Tax Mat’ publication shows further tax rises across the continent during 2014, following several increases in previous years. A new online information service providing monthly updates is now being prepared by the association.
Last year the Czech Republic introduced its first form of premium tax with a 3% contribution to a loss prevention fund while Malta upped stamp duty from 10% to 11%. Meanwhile Slovenia has raised its insurance premium tax rate from 6.5% to 8.5% with effect from January 2015.
These moves follow earlier changes, noted by the IUA’s research, in France, Denmark, Finland, Hungary, the Netherlands and Italy.
“Changes to insurance premium tax regimes are not uncommon and so the IUA is keen to provide more frequent updates for its member companies,” said Nick Lowe, the IUA’s director of government affairs.
“There have been several moves over the past 12 months to increase the revenue raised from such charges and these are not isolated instances. Across Europe the trend for ever more new additional levies on different classes of insurance cover has been continuing for a number of years.
“Once such charges have been established it is very unusual for them to be repealed.”
The IUA’s new online service will summarise insurance premium taxes applicable in each of the nations in the European Economic Area. It includes the basis of the tax, person liable, payment frequency and tax rate, together with other relevant information.