All life insurance products will be exempted from the five percent Value Added Tax (VAT) that will be applied in Saudi Arabia starting January 2018, the Saudi Press agency (SPA) reported.
The tax will be levied on other general and health insurance contracts, re-insurance, insurance brokerage, and other insurance activities, according to the Saudi Arabian Monetary Authority (SAMA).
Commissions, however, or additional fees related to insurance contracts, including life insurance, are taxable.
The General Authority of Zakat and Tax (GAZT) has stated that the VAT will not have any implications on the payments due to customers and insurance beneficiaries. Also, payments made by insurance firms to customers are non-taxable.
Comments
{{DisplayName}}
{{ElapsedTime}}