Tax Alert – Greece – Insurance Premium Tax Exemptions Confirmed
The newly established Independent Government Income Authority in Greece has clarified the previously ambiguous and challenged legislation in the Circular 1028/2017 (view pdf) and we can confirm that IPT exemptions for the following classes of business have been officially reinstated:
• Aviation (Hull & Machinery)
• Marine (Hull & Machinery – including Yachts)
• Life Insurance (if duration of policy is at least 10 years)
As well as this, they have also confirmed their position with regards to IPT credits for policies cancelled mid-term. The Circular states (without any room for interpretation) that IPT should not be credited back to Insured’s for cancelled policies. This does conflict with the current market practise in Greece and we will be monitoring the effect with our Insurer and Broker Clients over the coming months.
It is very concerning to us that this circular confirms that tax cannot be paid back on return premiums as tax should be returned on refunded premium as technically it is not due.
For any further information related to Insurance Premium Tax please do not hesitate to contact us: firstname.lastname@example.org.