Insurance premium tax (assurantiebelasting) is a tax on general insurance premiums. You pay this 21 % tax if you take out insurance in the Netherlands. If the insurance company or intermediary charges additional costs for services rendered that relate to the insurance, these costs are taxed as well. Generally it is the insurance company that transfers the payment for any tax due to the Dutch Tax and Customs Administration.
There are a number of exemptions from insurance premium tax, including:
- life insurance
- accident, invalidity and occupational disability insurance
- health and medical expenses insurance
- unemployment insurance
- transport insurance
- comprehensive weather insurance for farmers
- absenteeism insurance for staff on sick leave
Comprehensive weather insurance enables farmers to insure themselves against extreme weather, such as drought, hailstorms, heavy rain, storms, sleet, snow, frost, fire and lightning.
Absenteeism insurance for staff on sick leave means that you as an employer have taken out an insurance which covers the payment of wages for sick employees.
These last two exemptions from insurance premium tax have been added as of 1 January 2020.
What is the insurance premium tax rate?
The insurance premium tax rate is 21% on general insurance premium and 21% on the additional cost for services related to the insurance.