The increase is effective from March 2011
The Dutch government has decided to increase Insurance Premium Tax in the Netherlands from 7.5% to 9.7% from March 2011. It will reduce IPT back down to 9.5% from January 2015, according to Fiscal Reps.
The Dutch administration has also decided to abolish the requirement for non-resident insurers to appoint a fiscal representative for the payment of Insurance Premium Tax (IPT), continued Fiscal Reps. This is effective from January 1, 2011.
The amendments were made in the Dutch governments' Tax Plan for 2011.
The Dutch originally intended to increase IPT in January, but it caved in to pressure from the insurance industry and postponed the increase by two months.
These amendments allow the government to recoup the 80m Euro which the Dutch Treasury estimates it will miss out on during January and February 2011, claimed Fiscal Reps.