FiscalReps Meets the Belgian Tax Authorities

FiscalReps has strong relationships with international tax authorities and regularly meets with them to aid understanding and to ensure that information is always up to date and applied correctly.

We recently met with the Ministry of Finance and the Institut National d’Assurance Maladie-Invalidit√© (INAMI).  The purpose of these meetings was to address various topics including the compliance process, Insurance Premium Tax (IPT) prepayment and technical questions on tax application and location of risks rules.  FiscalReps has been given clarification from both entities on the information required to process tax reclaims.

With regards to IPT prepayment, we had an open discussion with the Ministry of Finance on the process for declaring, using and reclaiming the IPT prepayment.  As a result, FiscalReps understands that the overall process for the IPT prepayment is being assessed between the various services in charge of its administration. IPT prepayment has been a hot topic recently in Belgium as it triggers additional administration for insurers as well as tax offices and often results in a refund of part of the IPT prepayment paid.

During the meeting with INAMI, INAMI confirmed that the contribution of 7.56% due on premiums covering risks inherent to the ownership or the use of a motor vehicle should not apply to insurance contracts providing a guarantee to second hand car sellers in case the vehicles sold suffer mechanical breakdown.  Until recently, INAMI would have considered that such contracts should be subject to the contribution.  The change of application follows a recent note from the Belgian regulator who considers that such guarantees are not directly linked to the ownership or the use of a vehicle and are therefore outside the scope of the contribution.

We remain in close contact with both administrations.  If you have any questions please contact your dedicated Client Team or Christophe Bourdaire.

t:  +44 (0)20 7036 8070

e:  christophe.bourdaire@fiscalreps.com