Tax Alert: Slovakia – IPT Update

Slovakian IPT Update

Sovos FiscalReps met with the Slovakian Tax Office on 23 March 2018 and amongst other agenda points also discussed the transition from the current Non-Life Insurance Levy to Insurance Premium Tax (IPT).

On 26 March 2018, the Ministry of Finance of the Slovak Republic released an amended draft IPT legislation which changes the initial draft IPT Act and proposes the following:

  • Life Insurance will not be subject to IPT
  • All non-life insurance classes, apart from compulsory Motor Third Party Liability (MTPL) insurance, will attract an IPT rate of 8%
  • Compulsory MTPL insurance will be exempt from IPT and remain subject to a so called MTPL Levy (also known as partial premium transfer according to the Act on Insurance)
  • Insurance companies already registered for the Non-Life Insurance Levy will be automatically registered for IPT

It is worth noting that the above still represents a draft version of the legislation and the new IPT Act will be effective from 01 October 2018 provided it is approved by the Slovakian Parliament.

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Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
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