Increase in Insurance Premium Tax in Netherlands

On Tuesday 18th December 2007 the Netherlands tax authorities confirmed the tax plan for 2008. Incorporated within their tax plan is the increase of Insurance Premium Tax rates from 7.0% to 7.5%.

“8.1 Verhoging assurantiebelasting per 1 maart 2008 wordt de assurantiebelasting verhoogd van 7% naar 7,5%.”
Please see this this link to the Ministerie van Financien report for their changes from 1st January 2008.

The current version on the English section of the Netherlands website (see below) states taxes are 7% - Please ignore this the rate will be 7.5% however the translation work has not yet been updated.

“Insurance tax - Insurance tax is levied when insurance is taken out. Among the insurances exempted are life insurance, accident insurance, invalidity and disability insurance, medical expenses and health insurance, unemployment insurance and transport insurance. The rate is 7% (but will be 7.5%) and the tax is levied on the premium..”
Please follow this link to the appropriate section on the website.

How This Impacts You

Our Dutch office has consulted with Mrs N. Oost from the Tax office with regard to when the rate becomes applicable and we have had the following response:

• The change in rate is based on the date when the premium is payable.
• If the premium is payable on 1st March 2008 you will have to use the
  7.5% rate however if the premium is payable before 1st March 2008
  you have to use the 7% rate.

Should you need further clarification on this issue or any other regarding Insurance Premium Tax please do not hesitate to contact any member of the FiscalReps team.