IPT is gaining more prominence in many jurisdictions as authorities look to increase revenue through existing tax channels.
IPT is gaining more prominence in many jurisdictions as authorities look to increase...
Bringing you peace of mind
Multinational insurance risks can give rise to IPT and other parafiscal taxes. Rules on liability differ from country to country, ranging from location of risk to where an insurance company is established. As a result, this can be a complex area to manage, with significant penalties and interest for compliance failures in addition to potential reputational damage and undeclared tax.
We help enable multinational corporations and organizations, brokers and insurance companies to mitigate the cost and risk involved in national and multinational insurance policies carrying significant, irrecoverable IPT.
Potential benefits for you
A large multi-national corporate takes out a global policy with premiums as high as US$20 million. If IPT has not been correctly accounted for, the risks to the corporate could be significant. For instance, across Europe the average IPT rate is 10 percent and the retrospective assessable period is 5.5 years. Using the above premium and average rates and retrospection, this could result in an IPT exposure of US$11m.
Using a global mindset and forward thinking approach, KPMG’s IPT professionals work with you to help mitigate the cost and risk involved with IPT compliance. We can assist in setting, improving and benchmarking the risk management aspects of IPT, locally and globally. KPMG member firms are committed to helping organizations cut through the complexity of IPT to enable better decision-making and deliver more valuable business outcomes.