Eastern European countries are known for their harsh climate. However, the taxation of companies premiums remains slight. The tax advantages are under the sun light.
Antony has recently doubled the size of his industrial site in Poland.
Question: «How the premium on the new hall will be taxed?»
Answer: The application of taxes on firms’ premiums may vary from country to country. The taxation of premiums in Poland currently is zero.
Frank has installed two production lines in Czech Republic.
Q: «How the premium on the new machines will be taxed? And how much is the taxation of corporate policies compared to Germany or Italy?»
A: If compared to Eastern Europe, the insurance taxation in Germany and Italy is still very high. Instead, not only in Poland but also in Czech Republic the taxation of insurance premiums on industrial building and machineries is zero.
Which is the current situation in the other Central and Eastern Europe countries?
We publish the summary of insurance premiums taxation in Europe 2016. The table below is an extract from the official report realized by the Association of German Insurance Companies, based in Berlin.
In the class “Fire”, the Italian tax rate is higher than in the UK, Spain and Austria, applying rates of 9.5%, respectively, all’11,15% and 15%; however, it is lower than the rate applied in France (30%) and Finland (27%).
With reference to the “General Third Party Liability”, rates in Italy (22.25%) and Finland (24%) since several years are higher than those in Germany (19%), UK (9.5 %), France (9%) and Spain (6.15%).
Buying a local insurance in Eastern European Countries is convenient only for tax purposes?
Not only for this reason at all. It is true that in those Countries taxes on insurance premiums are lower then in Germany or Italy. However, many others are the benefits of a “local policy” concluded abroad.
