The new Independent Government Income Authority has published clarifications on the rules concerning Greek IPT in a recent circular (POL. 1028/22.2.2017). The circular clarifies the exemptions available as well as providing details on the treatment of fire insurance policies covering tobacco leaves and cancellations of policies.
By way of background, in July 2015, the IPT law was significantly amended. The standard IPT rate was increased from 10% to 15% and it appeared to remove all exemptions. The apparent blanket removal of exemptions left a large degree of uncertainty for insurers. The recent circular should serve to clarify the situation.
The circular identifies that IPT is waived for:
- Certain insurance contracts for ships and aircraft written in accordance with Article 3 of the Law 551/1970
- Life insurance policies with duration of at least 10 years
- Policies taken out by foreign and domestic shipping companies governed by Law 27/1975
The circular also states that the IPT rate on fire risk premiums for tobacco leaves remains at 15%.
Finally, the circular stipulates that in the event of the cancellation of the policy mid-term, the IPT should not be credited back.
If you have any questions, please contact:
t: +44 (0)20 7036 8070