Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/22/2013

Belgium - Life insurance tax on cross-border contracts, premiums 

February 22:   The Court of Justice of the European Union (CJEU) held that article 50 of Directive 2002/83/EC concerning life assurance is to be interpreted as meaning that an EU Member State may apply the insurance tax on life insurance premiums paid by the individual policyholder, who is a resident in that EU Member State—regardless of the country in which the contract was concluded. RVS Levensverzekeringen v. Belgische Staat, C-243/11 (21 February 2013)

Read the judgment: C-243/11


With this judgment, the CJEU decided in favor of a “dynamic” interpretation of article 50 of the Directive on life insurance, and did not follow the opinion of the Advocate General (i.e., the CJEU rejected the position that the policyholder’s place of residence at the moment when the contract is concluded determines which EU Member State has the taxing authority).

KPMG observation

With this judgment, insurance companies will need to monitor the place of residence of their policyholders and monitor indirect tax rules on insurance premiums across all EU Member States so as to fulfill their obligations—even if they have decided not to provide their services in any other EU Member State.


Read a February 2013 report [PDF 78 KB] prepared by the KPMG member firm in Belgium: Belgian Insurance Premium Tax: ECJ rules in favour of “dynamic” interpretation of the habitual place of residence




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