Insurance premium tax
If you take out insurance in the Netherlands, you have to pay insurance premium tax (assurantiebelasting). Insurance premium tax is not deductable.
What is insurance premium tax?
Insurance premium tax (or insurance tax) is a tax on insurance premiums. You pay this tax when you take out insurance.
Does the insurance company or intermediary charge additional costs for services rendered that relate to the insurance? And are these services billed separately? Then you have to pay insurance premium tax on these costs as well.
To whom do you pay insurance premium tax?
In the Netherlands you pay a tax straight to the government (direct taxes) or the tax is incorporated in the price of a product or service (indirect taxes). The insurance premium tax is an indirect tax (in Dutch) and is incorporated in the price of your new insurance. You pay the insurance premium tax to your insurance company. The insurance company transfers the payment for any tax due to the Dutch Tax and Customs Administration (Belastingdienst).
What is the insurance premium tax rate?
The insurance premium tax rate is
- 21% on general insurance premium, and
- 21% on the additional costs for services related to the insurance (for example advice on your insurance package or on a specific insurance)
Exemptions from insurance premium tax
There are a number of exemptions from insurance premium tax. You do not have to pay insurance premium tax on these insurance. These include:
- accident, invalidity and occupational disability insurance
- unemployment insurance
- insurances for sea-going vessels (not pleasure craft)
- insurances for aircraft for international public transport
- reinsurance
- absenteeism insurance for staff on sick leave
- comprehensive weather insurance for farmers (enables farmers to insure themselves against extreme weather, such as drought, hailstorms, heavy rain, storms, sleet, snow, frost, fire, and lightning)