Tax Alert: Slovakia – IPT Update

Sovos
March 28, 2018

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 global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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