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V2490-14 23 September 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
OTRO · impuesto sobre las primas de seguros

Not all travel assistance insurance is exempt from insurance premiums tax

An insurer asks whether its international travel assistance policies are exempt from tax. The DGT states that exemption applies only to coverages with a direct, exclusive, and non-incidental relationship to international transport.

The question raised

Possible exemption from the Insurance Premium Tax.

The DGT's ruling

The exemption requires that the covered contingencies have a direct, exclusive, and non-incidental relationship with international transport and that they occur during said transport. Trip cancellation and flight change coverages are not exempt because they occur prior to transport. Trip interruption also does not qualify. Assistance, repatriation, baggage, and travel accident guarantees will only be exempt if the losses occur during international transport and maintain the required direct relationship.

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