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
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