Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/9/2013

Hungary - Tax on insurance premiums 

January 9:   In Hungary, legislation introducing an insurance premium tax is effective 1 January 2013.

The new tax on insurance premiums is payable:


  • On insurance services provided by insurance companies or by Hungarian branches of insurance companies having their “seats” or places of permanent establishment within the European Economic Area (EEA) or in third countries, or
  • On insurance services provided by foreign insurance companies in a cross-border manner whereby the risks arise in Hungary.

Any value that effectively serves as a premium for comprehensive vehicle insurance or property or accident insurance policies will be treated as a taxable premium, whether or not it is shown as a gross written premium in the books of the insurance company.

For the purpose of preventing tax evasion, different risks covered in the same insurance policy are to be treated separately when assessing the tax base.


Read a January 2013 report [PDF 107 KB] prepared by the KPMG member firm in Hungary: Summary of the provisions of the new Act on Insurance Premium Tax




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