Tax on Insurance Premiums

The Tax levied in Finland on insurance premiums is related to certain insurance services. Tax on insurance premiums is levied on the insurance premium determined in the insurance agreement, if the object of insurance is a property located in Finland or an interest related to activity practiced in Finland or other interest in Finland.

Insurance premiums which are based solely on a personal insurance agreement, credit insurance agreement, reinsurance agreement or on an insurance agreement accordant with the Patient Injuries Act (585/86) are however exempted. Exemption also applies to insurance premiums which are based on a transport insurance agreement for goods to be exported from, imported to or transported via Finland, as well as to insurance premiums based on an insurance agreement for an aircraft, a seagoing vessel or other transport equipment used primarily for international traffic. Additionally exemption applies temporarily (20.3.2019 - 31.12.2027) to insurance premiums, which are based on a crop damage or plant pest insurance agreement.

Tax on insurance premiums is regarded as a consumption tax complementary to the value added tax (VAT). Over the years, the tax rate on insurance premiums has followed the standard rate of VAT and is currently 24 %. The tax rate on insurance premiums will be raised to 25.5 % from 1 September 2024.

Finnish Tax Administration, Guidance on tax on insurance premiums