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Tax Alert – Germany – Upcoming Amendments to IPT

We have information regarding various upcoming amendments to German IPT legislation according to the “Draft bill by the Federal Ministry of Finance Draft of a law to modernize insurance tax law ‘Insurance Tax Law Modernization Act – VersStRModG’“.

Applying from 1st of January 2021, policies which are covering objects, certain vehicles, travel and permanent establishments outside the EU/EEA with policyholders who are resident within Germany are liable to pay German IPT. Please note that this could mean that double taxation occurs.

Also applying from 1st of January 2021, drought insurance related to agriculture will now be taxed at a rate of 0.03% of sum insured. Also applying from the same date, principle representatives in the Lloyds insurance market will now be liable to pay tax.

Applying from 1st of January 2022, the tax exemption for personal coverages now only applies when the policyholder is related to the beneficiary. Also applying from the same date, returns are required to be filed electronically.

Applied retrospectively from 1st of January 2013, the planned extension of the reduced rate for marine hull now applies to ships that are not registered in the German shipping register.

If you have any questions on these amendments, please get in touch with a member of the team at info@impendulo.com

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