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.