If you take out insurance in the Netherlands, you have to pay insurance premium tax (assurantiebelasting).
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. In general, 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).
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.
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.
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:
- 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 (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