Insurance premium tax (assurantiebelasting) is a tax on general insurance premiums. You pay this 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
Prinsjesdag (Budget Day) 2019 announcement
On Prinsjesdag (Budget Day) 2019, the government announced it plans to expand exemptions to insurance premium tax. The 21% tax on insurance premiums is to be dropped for:
- comprehensive weather insurance for farmers
- sick pay insurance for employers
If you are a farmer, you will no longer be required to pay insurance premium tax on comprehensive weather insurance. The government hopes lower costs will encourage more farmers to take out weather insurance. As they do so, the premiums will become lower. Comprehensive weather insurance enables farmers to insure themselves against extreme weather, such as drought, hailstorms, heavy rain, storms, sleet, snow, frost, fire and lightning.
If you are an employer, you are also to be granted exemption from insurance premium tax. This means if you have insurance which covers the payment of wages for sick employees, you do not have to pay insurance premium tax.
These exemptions are expected to come into force from 1 January 2020. This is subject to their acceptance by the upper and lower houses of parliament.