Indirect Tax

IPT Compliance

IPT has been for the last few years a hot topic for Tax Authorities all over the world as an easy way to attract more revenue. In parallel, it has become a significant issue for global insurers operating under Freedom of Service.

Regulations are getting more and more complex with no European harmonisation foreseen:

• Different rates, filing periods and deadlines, risk categories, tax points per country
• Prepayment of a lump sum required in certain jurisdictions,
• Fiscal representatives/permanent establishment might be required,
• Rates evolution can leave a short delay of adaptation to insurers
• Various associated levies in some countries (Fire Brigade Tax, stamp duty, flood levy, ANPC, Fund for victims of terrorism levy, solidarity fund for victims of extortion, etc.)

The policyholders are less and less willing to risk compliance issues (reputational and/or financial), while the Tax Authorities are more and more prone to stricter controls of the correctness of the IPT declared and paid.

For the insurers, these issues can be a burden getting in the way of making business. Let us help you focus on your clients instead, as we take care of your IPT compliance in Luxembourg.

As part of an international network, BDO can provide you with a single point of contact with a global expertise.

Our team of seasoned professionals will, in close cooperation with your technical accountants, manage the initial registration (if need be), preparation and submission of the IPT returns.

We will agree with you on a standardised data collection process, data which will be reviewed and validated before being reported in the IPT returns. Once the draft returns are approved by one of your representatives, we will submit them to the Tax Authorities. We will assist you in the occurrence of an IPT Audit by the Luxembourgish Authorities, and liaise with them for any day-to-day question.

Ad hoc IPT advice (location of risks, type of risk, applicable tax rate) can also be provided on demand.