As part of its regular discussions with local tax authorities, FiscalReps recently met the tax authorities in Belgium to discuss Insurance Premium Tax (IPT) and long-term insurance business. As you may recall, the Belgian tax authorities won an ECJ decision last year in relation to the ‘dynamic’ interpretation of the location of risk rules. The Belgian IPT legislation is complex as it provides exemptions, reduced IPT rates and a default rate according to the type of long-term business that is written (interestingly certain European long-term products are not recognised in Belgium).
The meeting was very productive allowing FiscalReps and the tax authorities to work closely together to obtain a common understanding. We also discussed specific client queries such as estimating IPT amounts and more generic areas such as offsetting.
We will keep you updated on future developments with this and other meetings with the tax authorities.