Are insurance intermediaries and brokers taxed?

Insurance intermediaries and brokers in Ukraine are not in very good working conditions. The tax authorities do not favor them. Probably because they are not certified and in no way licensed (see TOP 20 Global Insurance & Reinsurance Brokers).

In fact, anyone can call themselves an insurance intermediary. They are agents representing the interests of the insurer and brokers representing the insured.

Agents work on a simplified taxation system – as private entrepreneurs.

Insurance brokers are needed, as it is very difficult for a client to sort out among all insurers. That is why we need an institution of insurance intermediation. The broker forces the company to make the product cheaper and better, which is not always pleasant for the insurer.

Insurance brokers in Ukraine have been oppressed for a long time. This happens in particular through a 20% value added tax, which is not applicable to insurance agents.

The whole of Europe is guided by the EU directives, which say that insurance and mediation in insurance activities are not subject to value added tax. In Ukraine, the opposite is true. Therefore, it is necessary to immediately include insurance brokers in the second article of the law “On Value Added”.