Latest insurance premium tax changes from TMF Group

TMF Group has reported the latest changes to insurance premium tax (IPT) globally, as well as other changes to fees, charges and levies affecting global insurance premiums.

Italy – Updated 2022 return form
On 31 March 2023, the Italian Tax Authorities published a new tax return form for reporting the insurance premium taxes collected in the previous year. The updated version of the form includes two additional fields referring to the prepayment (in line AC5). The first field relates to the prepayment paid in November 2023 for year 2022, while the second one refers to the portion of the prepayment mentioned above, which was not offset against the 2022 IPT liabilities.

Additionally, a new line (AC5A) was added to reflect the prepayment amount that was offset against the exceeding prepayment from the previous year. These changes apply to the 2022 returns, which were due on 31 May 2023. The Agenzia delle Entrate portal for electronic submission has yet to be updated to reflect these adjustments.

Poland – Levy to finance supervisory authority KNF increased to 0.14%
The 2023 levy rate to finance the Polish Financial Supervision Authority (KNF) was increased to 0.14% with effect on 15 March 2023. Both locally based insurers and foreign insurers with branches in Poland are required to pay the levy.

El Salvador – Replacement of FBC at 4% by ad-valorem tax at 5%
The Legislative Assembly of El Salvador has ratified the Law of the Fire Department, which repeals the Law of the Fire Department of 1995. With the exception of mortgage insurance policies, this law imposes a 5% ad-valorem tax on the contracting, extension, renewal, or modification of insurance that is sold, offered, or negotiated in El Salvador, effective as of 7 January 2023.

Democratic Republic of Congo – Implementation of SNECA fee
Ministerial Decree CAB/MIN/FINANCES/2022/035 has introduced with effect on 1 March 2023 a new tax (SNECA fee), solely applicable to admitted insurers, which is due on two types of compulsory insurance – import cargo and motor third-party liability:

• $25 per policy covering import cargo;
• $2 per policy covering motor third party liability.

Finland – Fire Prevention Fee
Insurers registered in Finland are reminded that the 2022 annual fire prevention fee return is due by 15 July 2023. The return should detail the fire prevention fee liabilities arising throughout 2022. TMF stressed that there is no payment due at this stage and the Finnish Regional State Administrative Agencies will send out any invoices arising from the submitted returns once the declarations have been received. Usually the payment is due by 1 September.