IPT Germany

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Insurance Premium Tax Law

The German law for Insurance Premium Tax is Versicherungssteuergesetz, VersStG.

Basis of German IPT Calculation

German IPT is based on the premium charged to the insured. This includes any additional fees such as drafting costs. The IPT is charged to the policy holder, based upon the date of payment of the insurance premium.

IPT Rates

The standard rate for German IPT is 19% (16% up to the end of 2007) on non-Life insurance cover. 

Principal classes subject to IPT in Germany are:

  • Accident; 
  • General liability; 
  • Miscellaneous financial loss; 
  • Property and fire; 
  • Motor; and 
  • Travel.

All life and health policies are exempt from German IPT.

German Parafiscal Charges

In addition to Insurance Premium Tax, there is also Fire Brigade Tax of 8% which is due on Property cover. This is payable on the 15th of the month following the premium payment.

Payments of German Insurance Premium Tax

German IPT is remitted to the nominated tax office. For foreign insurers providing German insurance cover under the Freedom of Services, the relevant tax office will be determined by the insurer’s country of residence. For example: France - Koblenz; and US – Bonn. Any German IPT due is payable on the 15th of the month following the payment of the premium.

Find out more about IPT.