The finance ministry has issued a decree extending the records required of insurers or their German agents with effect from January 1, 2005.

Insurance companies are required by the Insurance Tax Act to keep adequate records to demonstrate correct and proper payment of the tax. The Act specifies these requirements in greater detail. The ministry of finance has just published a decree back-dated to November 27 reiterating these requirements, emphasising that insurers must follow the normal standards of accounting books and records - and in particular that they be prepared and kept in Germany - and adding a few extras, saying that the items mentioned in the Act were only examples. The items added are:

  • Documents supporting the insurable risk classification of each premium received
  • Clarification of the fire element in buildings and household chattels policies
  • The specific grounds for not taxing premiums
  • Premium refunds and waivers
  • Insured period
  • Date of receipt of premium - if the tax is calculated on premium receipts
  • Booking date
  • Voucher number - manual bookings
  • Booking keys and codes.
  • The name and address of a joint insurer paying the tax
  • Memorandum accounts showing the total premium received and tax due where tax is paid on behalf of a joint insurer
  • Premiums received must be segregated by tax rate. The same applies to the ledger accounts for premiums receivable and payable.

The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.