On 2 May 2024, the Belgian parliament approved a draft bill that allows the tax authorities to collect insurance premium tax (IPT) from Belgian insured companies that benefit from risk coverages under a foreign policy.
The new rules apply specifically to cases where a foreign company enters into an insurance contract with a foreign insurer for risks located in Belgium, for the benefit of its Belgian subsidiary or branch. Under the new rules, the Belgian establishment becomes liable for the reporting and payment of the Belgian IPT instead of the foreign company that is the actual policyholder.
For example, if a non-Belgian multinational with activities in Belgium concludes an insurance contract with a non-Belgian insurer that covers worldwide risks, Belgium will seek to claim IPT on the part of the premium attributable to the Belgian risk.
If no IPT has been paid in Belgium, the authorities will hold the insured clients accountable for the tax.
Next steps
The law will enter into force 10 days after its publication in the official gazette, which is expected in the very near future. The different stakeholders in the insurance value chain may wish to start reassessing their procedures and business model now ahead of the implementation of the new legislation.
Key contacts
Joaquim Heirman
Joaquim is a Director at Deloitte Legal, specialising in all VAT matters. He has over 10 years of experience in advisory services including guiding companies through administrative and court procedures. The majority of his clients are privately held companies and include real estate developers, law firms, health care suppliers and governmental institutions. Since 2009 he is a member of the Brussels bar. He published regularly on VAT matters and lectures at the KULeuven (University Leuven) on VAT aspects of real estate and is research assistant at the UGent (University of Ghent).
