Excise duties on goods

A current premium tax amounting to 1.1% of the premium is payable on insurance against loss or damage. 

The tax is payable when insurance premiums are collected. An insurance undertaking must pay the tax on insurance against loss or damage to the Danish Customs and Tax Administration (Skatteforvaltningen) if 

• the business enters into or has entered into agreements concerning insurance against loss or damage, and 

• the premium is taxable.

Taxable

Tax is payable on premiums for insurance against loss or damage in the following different cases: 

• When the insurance contract is entered into in Denmark. 

• When the insured risk is located in Denmark, irrespective of where the agreement was entered into. 

• When the parties are resident in Denmark, unless no part of the premium is to be paid in Denmark. 

Exempt from tax 

The premium is exempt from tax for: 

• Maritime, transport and aviation insurance 

• Insurance in non-supervisory mutual non-life insurance undertakings 

• Occupational injury insurance

• Credit and guarantee insurance

• Reinsurance contracts

• Statutory liability insurance for motor vehicles, etc.

• Unemployment insurance in recognised unemployment insurance funds

Registration of foreign insurance undertakings 

All insurance undertakings, both Danish and foreign, must notify registration with the Customs and Tax Administration via www.indberet.virk.dk and declare and pay the tax in E-tax for businesses (TastSelv Erhvev) if they are taxable under the Danish Non-Life Insurance Tax Act (Skadeforsikringsafgiftsloven). 

Foreign insurance undertakings with a place of business in an EU member state, or in a non-EU member state with which Denmark has an agreement concerning mutual collection assistance equivalent to the rules within the EU, may choose to register with a representative residing in Denmark.

This applies to undertakings from all EU member states, and currently Norway, Iceland, the Faroe Islands and Greenland. Undertakings in these countries may also choose to register directly in Denmark without a Danish representative. A representative residing in Denmark must either be a person residing in Denmark, or a business with a place of business in Denmark.

For more detailed, comprehensive legal information concerning insurance against loss or damage, see our Danish-language legal guide.

There is a tax on insurance of pleasure craft registered in Denmark.

A pleasure craft is registered in Denmark when one of the following items is fulfilled:  

• The pleasure craft is registered in the Danish Ship Register, even though the pleasure craft is used exclusively for navigation outside the Danish customs area.

• The pleasure craft is owned by a person resident in the customs area and is insured for navigation within this area.

• The pleasure craft is owned by a person resident outside the customs area, but where the rules for customs and duty-free import are no longer fulfilled.

• The pleasure craft is leased by a person resident in the customs area and is insured for navigation within this area.

The following insurance is subject to the tax liability: 

• Comprehensive insurance and combinations of comprehensive insurance and other forms of insurance.

• Fire insurance taken out by private individuals.

• Dealer insurance (business insurance) covering pleasure craft (whole and semi-finished) which:

  • Is located on land for the purpose of sale. 

  • Is being transported within Denmark.

  • Is subject to launch and demonstration navigation by the business’ employees. 

• Supplementary insurance against a separate premium supplement that is taken out in combination with non-taxable family and holiday home insurance 

• Insurance of a pleasure craft registered in the Danish Ship Register, where the owner is a Danish citizen, but resident abroad 

• Insurance of a Danish-owned pleasure craft registered in the Danish Ship Register, even though it is used exclusively for renting-out abroad.

Reimbursement and writing-off 

The insurance amount (pro rata) for insurance of which the premium is reimbursed to policyholders or written off as unrecoverable may be deducted from the taxable insurance amount in the month in which the reimbursement or writing-off takes place.

For more detailed, comprehensive legal information concerning pleasure craft insurance, see our Danish-language legal guide.

Tax is payable on insurance premiums relating to statutory motor vehicle liability insurance.

The tax is payable by insurance undertakings which write the taxable liability insurance. This applies to both Danish and foreign insurance undertakings and representatives of foreign insurance undertakings.

The tax liability concerns the following insurance:

• Liability insurance for registered

  • motor vehicles

  • tractors

  • trailers

  • semi trailers

  • sidecars and

  • trailer equipment

• Liability insurance for bicycles with auxiliary motors (mopeds).

No tax is payable on: 

• Liability insurance concerning cargo and goods vehicles and related trailers used for the transport of goods for the account of third parties (haulage contractors) authorised under the Danish Act on the Carriage of Goods (Lov om godskørsel).  

• Liability insurance for tractors that are not subject to a registration obligation, but must solely be approved. 

• Border insurance for vehicles that are registered abroad.

• Liability insurance that is not related to a specific vehicle. This concerns, for example, liability insurance for vehicles on trial number plates, workshop insurance and hotel liability insurance. 

For more detailed, comprehensive legal information concerning motor vehicle liability insurance, see our Danish-language legal guide.