Netherlands: Place of risk and transport exemption for insurance premium tax purposes (court decision)

Place of risk for insurance premium tax (IPT) purposes was the Netherlands.

Place of risk for insurance premium tax (IPT) purposes was the Netherlands.

The Zeeland-West-Brabant District Court on 31 October 2023 held that the place of risk for insurance premium tax (IPT) purposes, under a satellite insurance policy insuring against financial risk to a Dutch establishment of a legal entity that owned the satellite, was the Netherlands.

The court also held that the IPT exemption for transport insurance, on which guidance was recently released in the new Dutch policy statement on IPT (read TaxNewsFlash), did not apply following the rocket launch of the satellite.

KPMG observation

Although the case concerns highly specialized satellite insurance policies, the court’s interpretations of place of risk and the transport exemption for IPT purposes may offer insights for other similar insurance tax issues.

Read a November 2023 report prepared by the KPMG member firm in the Netherlands



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.