Taxable Objects

The tax is levied on the payment of insurance premiums for insurance relationships established through a contract or through other means. Different requirements must be fulfilled for different insured risks in order for them to be subject to insurance tax.

Immovable Property

The object is located within Austria (especially buildings and facilities). 

Example:

The place of business of the insurer and the place of residence of the insurance holder (natural person) are both in Austria. The insured object risk (hunting lodge) is located in Germany. The insurance relationship is not subject to insurance tax in Austria. 

Vehicles of all types

The vehicle is liable to registration in Austria or liable to be recorded in an official register (a vehicle is liable to registration in Austria if the vehicle’s permanent location is in Austria).

Example:

An executive director of company XY has the vehicle at his or her disposal and uses it at his or her principal residence in Austria; therefore the vehicle’s permanent location is the executive director’s principal residence in Austria. As a result, the vehicle is subject to insurance tax in Austria.

Engine-related Insurance Tax

The following vehicle types are subject to engine-related insurance tax if registered in Austria:

• Motorcycles
• Passenger cars and combination motor vehicles with a gross vehicle weight of up to 3.5 tons
• All other types of motor vehicles with a gross vehicle weight of up to 3.5 tons, with the exception of tractors and traction engines which are authorized for traffic use in Austria and for which a motor vehicle liability insurance contract (compulsory liability insurance or voluntary motor vehicle liability insurance) has been concluded.

The engine-related insurance tax is levied in addition to the 11 percent insurance tax levied on the insurance fee (premium) for motor vehicle liability insurance, and must be withheld and paid by the insurer. It consists of a fixed amount depending on the type of insured vehicle (motor cars: engine power in kilowatts and occasionally CO₂ emissions; motorcycles: engine displacement and occasionally CO₂ emissions) and the period of time for which the insurance premium is paid.

Risks associated with travel or holidays based on an insurance relationship with a term of no longer than four months if the contract has been signed in Austria.

 The insurance contract is concluded in Austria.

Insurance against risks other than those named above

If the insurance holder

• is a natural person whose residence or habitual residence is within Austria at the respective time of payment of the insurance premium, or
• is not a natural person, but the company, business premise or respective facility to which the insurance relationship applies is located within Austria at the respective time of payment of the insurance premium.

Life insurance contracts are a common application of this provision:

Examples for life insurances

•  The place of business of the insurer and the place of residence of the insurance holder (natural person) are in Austria. The insurance relationship is subject to insurance tax in Austria.
• The place of business of the insurer is in England, the place of residence of the insurance holder (natural person) is in Austria. The insurance relationship is subject to insurance tax in Austria.
• The place of business of the insurance company is in Germany, the insurance holder (natural person) transfers his place of residence from Germany to Austria. The insurance relationship is subject to insurance tax in Austria from the  time of this transfer of residence to Austria. 
• The place of business of the insurance company is in Austria, the place of residence of the insurance holder (natural person) is in Germany. The insurance relationship is not subject to insurance tax in Austria.