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Find out more about IPT.
The law for Insurance Premium Tax is contained within Acts laid down by the Ministry of Finance.
Basis of Luxembourg IPT Calculation
The basis for the IPT calculation is the total amount of the premium payable by the insured, which includes all costs and commission but excludes fire brigade charges. The tax must be shown in addition to the premium.
Luxembourg 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.
Luxembourg IPT Rates
Principal classes incurring IPT in Luxembourg are:
- All direct non-life, except livestock risks with sum insured of less than EUR 375; and
- Personal accident and health.
All life, disability and capitalisation policies are exempt from IPT.
Luxembourg Parafiscal Charges
In addition to Luxembourg IPT, there is a Fire Brigade Tax that is due on fire and business interruption premiums.
Payments of Luxembourg IPT/Parafiscal Charges
Both Luxembourg IPT and Fire Brigade Tax are payable on a quarterly basis. Returns must be submitted by the 15th of the month following the quarter end and payment must follow within two weeks.
Find out more about IPT.