| Sumario: | Municipal Income Law provides that a certain part of the premiums of the fire insurance contract concluded by the insurance companies, is paid to the municipalities where the subject of the insurance contract is located, as fire insurance tax. In a fire insurance contract risks such as weight of snow, flood, landslide, etc. may also be covered, as stipulated under the relevant general conditions, in addition to the risk of fire, or a Fire Loss of Profit Insurance contract may be also concluded. This situation has led to debates that of a tax shall or shall not be charged by the municipality from the premiums collected by the insurer for such a coverage. In this context, it is necessary to determine the subject of that tax, the purpose of the regulation and the purpose of the tax in fire insurance.
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