If you take out insurance in the Netherlands, you have to pay insurance premium tax (assurantiebelasting).
What is insurance premium tax?
Insurance premium tax is a tax on general 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? If they are billed separately, these costs are taxed as well.
Generally 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.
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.
Exemptions from insurance premium tax
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
- insurances for sea-going vessels (not pleasure craft)
- insurances for aircraft for international public transport
- transport insurance
- export (credit) insurance
- WIA self-insurer insurances
- 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.