Austria IPT

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Austria IPT

Below is a brief guide to the Austrian IPT regime.

Basis of Austrian IPT Calculation

The basis for the IPT calculation is the total amount of the premium payable by the insured including brokers’ and agents’ commission.  The tax does not have to be shown in addition to the premium.

Austrian IPT Liability

The insurer is liable for the tax calculation and payment. EEA insurers operating on the Freedom of Services basis are not required to appoint a local fiscal representative.

Austria IPT Rates

Most of Insurance premiums are taxed at the default rate of 11%. However, some specific risks are taxed with lower rates:

  • Accident: 4%
  • Health: 1%

Reinsurance, goods in transit for international cargo and export credit should be exempt from Austrian IPT.

Austrian Parafiscal Charges

In addition to Austrian IPT, there is also Fire Brigade Charge (FBC) which is due on property and fire premiums. The rate of FBC is 8% and should normally be borne by the insurer. However, it is possible for the insurer to charge half of FBC to the policyholder.

Payments of Austrian IPT/Parafiscal Charges

Both Austrian IPT and Fire Brigade Charge are payable on a monthly basis on the 45th day following the reporting period.

Find out more about IPT.