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.

Denmark IPT

Below is a brief guide to the Danish IPT regime.

Basis of Danish IPT Calculation

The basis for the IPT calculation is the total amount of the insurance premium.  The insurance premium includes all consideration paid for the insurance. The tax should 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 can register directly with the tax authorities, but non-EEA insurers are required to appoint a local fiscal representative.

Denmark IPT Rates

Most Insurance premiums are taxed at the default rate of 1.1%. There are currently no other IPT rates applicable.

The main exemptions apply to:

  • marine, aviation, transport;
  • credit and suretyship;
  • life;
  • workers compensation insurance
  • compulsory motor third party liability; and
  • reinsurance premiums

Danish Parafiscal Charges

In addition to IPT, there are also several additional insurance levies and charges that may be due:

  • Flood Damage Levy – due on fire insurance
  • Pleasure Craft Insurance Tax – due on pleasure craft hull insurance
  • Motor Liability Insurance Tax and Environment Protection Levy – due on compulsory motor third party liability insurance
  • Guarantee Fund for Non-Life Insurance – due on certain private line insurance

Settlement of Danish IPT and Parafiscal Charges

Both IPT and parafiscal charges are payable on a monthly basis on the 15th day following the reporting period, with the exception of the Flood Damage Levy and the Danish Guarantee Fund for Non-Life Insurance which is payable on a quarterly basis on the 15th day following the reporting period.

Find out more about IPT.