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Generic Tax Name Insurance tax - Non-life insurance tax
Tax name in the national language Skadesforsikringsafgiftsloven
Tax name in English Non-life insurance tax
Member State DK-Denmark
Tax in force since 2013/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Statutory Notice No 551 of 18 June 2012 which entered into force on 1 January 2013 and replaced stamp duty for insurances.

The non-life insurance tax replaces the stamp duty for insurances, which was considered outdated and unnecessary complicated. The most profound change, which follows from this change in legislation, is that a relatively high tax payment on the purchase of non-life insurances is replaced by an ongoing tax based premium paid.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




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Beneficiary





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Geographical Scope
 
Taxpayers

An insurance company have to pay non-life insurance tax, if

  • the company sign agreements or have signed agreements on non-life insurances and
  • the premium is a subject of taxation.

Both conditions must be met.

The provisions imply that insurance companies, which conclude agreements on non-life insurance, have to pay non-life insurance tax.

 
Tax object and basis of assessment

 Tax object:

  • Non - life insurance documents, which are issued in Denmark

  • Non - life insurance documents that involve risks placed in Denmark

  • Non - life insurance documents where all parties are resident in Denmark - unless no part of the premium implies payments within Denmark.  

The assessment is based on the insurance premium.

 
Deductions, Allowances, Credits, Exemptions

Exemptions:

  • Insurance policies issued by mutual insurance companies that are not under supervision.
  • Insurance policies issued as a result of the Act on protection against the consequences of industrial injuries.
  • Marine insurance and transport insurance as well as Air Transport insurance.
  • Creditor's insurance and Guarantor's insurance.
  • Motor vehicle liability insurance  
  • Contractual reinsurance arrangement  
  • Unemployment insurances signed by recognized unemployment funds

Moreover, there is no subject of taxation, when the risk of the contract is located in a State governed by the Agreement on the European Economic Area (EEA).

Example: a house insurance concerning a house in Germany would not be a subject of taxation, because Germany would be the risk country.

 
Rate(s) Structure

The tax rate is 1.1 % of the insurance premium.

 
Tax due date
 
Tax collector

The fee must be paid when the insurance companies collect the insurance premiums. The insurance company then pays the non-life insurance tax.

The tax period for the non-life insurance tax is the calendar month, the tax must therefore be paid monthly on the basis of the insurance premiums collected during the tax period.

 
Special features
 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d214ba

Comments

revenue appears jointly with Registration tax