A new act took effect on 1 January 2019 that introduces an insurance tax of 8% covering non-life insurance for insurance risks located in Slovakia. Compared to the original proposal, the new insurance tax will not apply to life insurance.
The insurance tax is considered an indirect tax and will be paid by insurers that collect premiums. The tax period is defined as the calendar quarter and the deadline for filing tax returns is set to the end of the month after the end of the given tax period. Insurers shall settle their insurance tax obligations using a special insurance tax return form. The insurance tax return form will be used for the first time when filing insurance tax returns for the first calendar quarter of 2019.
The Insurance Tax Act cancels payment of the insurance premium deduction and the only remaining deduction is the deduction on premiums received for mandatory third-party liability coverage for the operation of motor vehicles.
