With reference to the newly adopted Insurance Premium Tax Act (promulgated in the State Gazette, issue 89, dated November 2, 2010), this is to advise you of some major provisions stipulated therein:

1.  Starting January 1, 2011, a 2 % levy shall be charged on each collected insurance premium and/or each collected insurance premium installment under insurance policies regardless of the date on which such insurance policy has been executed. 
2.  The insurance premium tax is an indirect tax and shall therefore be borne by end consumers, that is, the insured person shall be ultimately responsible for its payment. 
3.  Tax shall not be levied on fees and charges payable to the Insurance Guarantee Fund and for the self-adhesive stickers provided to each policy holder meant to verify that vehicle owners have purchased and are in possession of MTPL.
4.    The respective tax event shall occur as of the date on which insurance companies collect payments of insurance premium from the insured or the insurance broker.  
5.  The tax shall also be due as of the time of collecting insurance premium installments under insurance contracts (policies) executed prior to January 1, 2011. 

Exemptions from this tax include:
-   insurance premiums under Commercial Goods in Transit insurance policies where dispatch or destination locations fall outside the territory of the Republic of Bulgaria;
-    insurance premiums under Vessel Loss and Damage and Third Party Liability Insurance policies
-    insurance premiums under Aircraft Loss and Damage and Third Party Liability insurance policies.

For further information, please contact EUROINS Insurance Company representatives in your city.