The scope of Insurance Premium Tax (“IPT”) has been extended to brokers and intermediaries by the Act from 28 December 2023. As a result, beginning in 2024, income, such as commissions, received by an intermediary in connection with the provision of insurance services, will be liable for IPT when provided under a contract separate to the underlying insurance policy, if certain conditions are met.
A notification about this change was recently published on the Belgian Tax Office’s website. This notification advises insurance brokers that the first due date for settling their IPT obligation will be 20th of June as the Tax Office has acknowledged that it is in the process of working out the details of its application. At this stage, no more specifics were communicated, and it is expected that further details, such as how to declare the January to May periods and whether they should be declared on one or five returns, will be communicated prior to the deadline.
