Denmark IPT and Stamp Duty

Disclaimer: This article was accurate at the time of publishing. To obtain the most up-to-date information, please get in touch with our local experts.

Find out more about IPT.

The Danish law for Insurance Premium Tax is contained within Acts laid down by the Ministry of Finance.

Basis of Danish IPT/Stamp Duty Calculation

The basis for the IPT calculation is the total amount of the premium payable by the insured excluding brokers’ or agents’ commission, stamp duty and parafiscal charges, except for yachts where it is based on the sum insured.  The basis for stamp duty calculation is the total amount of the premium payable by the insured excluding IPT and parafiscal charges. The tax in both cases must be shown in addition to the premium.

Danish IPT Liability

The insurer is liable for the tax calculation and payment. EEA insurers operating on the Freedom of Services basis are required to appoint a local tax representative.

Denmark IPT Rates

Principal classes incurring IPT in Denmark include:

  • Motor liability (depending upon type of vehicle with exceptions); and
  • Yachts. 

All other classes are exempt from Danish IPT.

There are many variations to the rates above.  

Danish Stamp Duty Rates

All non-life policies (with certain exceptions) are subject to Danish Stamp Duty.  Stamp Duty is only applied on the first issue of a policy and on subsequent increases in either limits or premium.  If limits decrease no refund is given.

Danish Parafiscal Charges

In addition to IPT and Stamp Duty in Denmark, there are also a number of additional insurance levies and charges, including:

  • Flood Damage Levy (property and fire)
  • Environmental Charge (motor third party liability)

Payments of Danish IPT/Stamp Duty/Parafiscal Charges

Danish IPT is payable on a monthly basis.

Danish Stamp Duty is payable on a monthly basis.

The Insurance Parafiscal Charges and Levies are due on different bases – please contact us for more details.

Find out more about IPT.