Following our November newsletter, we would like to update you on developments in respect of the 8% Non-Life Insurance Levy in Slovakia.

FiscalReps can confirm that the proposed amendments to the Act on Insurance (Act No. 39/2015 Coll.), which included the introduction of an 8% Non-Life Insurance Levy, were approved by Parliament in the third final reading on 22 November 2016.

The legislation will be effective from 01 January 2017.  Although the proposed changes have been approved by Parliament, the amendments will need to be signed off by the President of the Slovak Republic.    

The 8% Non-Life Insurance Levy is covered under Section 68a which shall be inserted into the Act on Insurance.  This section explains that the Levy is due from the insurance premium received.  Moreover, the Levy will apply to non-life insurance contracts concluded after 31 December 2016.

Based on the approved draft legislative changes the Non-Life Insurance Levy shall be an insurer borne tax and payable from the gross premium received.  The Levy should not apply retrospectively to existing insurance contracts and will only apply to new insurance contracts concluded after 31 December 2016.  Moreover, the Levy will apply to all non-life insurance classes apart from compulsory Motor Third Party Liability insurance which is already subject to an existing 8% annual Levy.

The frequency of payments of the new Non-Life Insurance Levy was changed during the second reading in Parliament and approved in the third reading as follows.  The Levy is due by the end of December for the period from January to November of the relevant calendar year and by the end of January the following year in respect of December.

The Levy will be part of a revenue of the state budget.  It is worth noting that Section 68a refers to Levy due from premiums received from activities performed in the territory of the Slovak Republic.  FiscalReps is in dialogue with the Ministry of Finance of the Slovak Republic to clarify whether this wording could have any impact on the applicability of the Levy based on the Location of Risk rules and we will provide further information in this regard in due course as appropriate.


If you have any questions please feel free to contact your FiscalReps Client Team.