Latest insurance premium tax rate changes from TMF Group

TMF Group has announced the latest rate changes to insurance premium tax (IPT) and other insurance levies around the world, as well as upcoming insurance tax deadlines.

Rate Changes

Denmark – Guarantee Fund for Non-life Insurance suspended for motor contributions in 2024

The Danish Financial Supervisory Authority has announced in Skade-information 33/23 that the contribution on motor insurance to the Guarantee Fund for Non-life Insurance Companies will be suspended in 2024. For domestic insurance companies, the obligation to pay contributions on motor insurance shall end on 31 December 2023 while the Guarantee Fund will no longer be allowed to require contributions from foreign insurance companies writing motor insurance policies in Denmark after 23 December 2023.

Accordingly, the last report to be submitted by foreign insurance companies will cover the fourth quarter until 23 December 2023 and will have to be submitted to the Guarantee Fund by 31 January 2024 with a payment deadline on 1 February 2024. The contribution might resume in 2025, presumably as a contribution divided between motor liability and comprehensive motor insurances.

France – Online filing of IPT and Victims of Terrorism contribution

French tax authorities have confirmed that IPT will be filed online effective 1 February 2024 when declaring January 2024 IPT. In addition, the Victims of Terrorism contribution will no longer be declared to the local Guarantee Fund but will be added to the IPT return. Other parafiscal charges currently declared under the IPT return such as the Natural Catastrophe Levy will remain in the online version of the IPT return. The payment process will also change, switching from bank transfer to direct debit. Bank references will have to be provided to the tax authorities, which will issue a mandate that will have to be accepted by the taxpayers’ banks.

For completeness, the other contributions due to the Guarantee Fund, in particular those applicable on motor liability insurance will continue to be declared to the Guarantee Fund, while the Taxe de Solidarité Additionnelle due on health insurance will also continue to be declared to the URSSAF.

Australia/Victoria – Stamp Duty gradually abolished

The stamp duty rate will be gradually reduced by one percentage point each year, over ten years, starting from 1 July 2024 according to Act number 18/2023. Therefore, for the following years, the rates will be as listed below:

• 10% – on or before 30 June 2024
• 9% – 1 July 2024 to 30 June 2025
• 8% – 1 July 2025 to 30 June 2026
• 7% – 1 July 2026 to 30 June 2027
• 6% – 1 July 2027 to 30 June 2028
• 5% – 1 July 2028 to 30 June 2029
• 4% – 1 July 2029 to 30 June 2030
• 3% – 1 July 2030 to 30 June 2031
• 2% – 1 July 2031 to 30 June 2032
• 1% – 1 July 2032 to 30 June 2033
• 0% – on or after 01 July 2033

Egypt – Stamp duty increase

Law No. 31 of 2023, which revised the Stamp Tax Law, raised the stamp duty rates with effect from 1 July 2023. The rate applicable to accident, health and compulsory insurances has been increased to 2%, while the rate on all other non-life insurances increased to 11%. The stamp duty on life insurance remains at 1%.

Moldova – Guarantee Fund Levy decrease

According to official gazette no. 251-253-84, the rate of the Guarantee Fund Levy has been reduced from 0.75% to 0.3% with effect from 11 July 2023.

US/Kansas – Surplus lines tax decrease 

The rate of the Kansas surplus lines tax is due to be reduced from 6% to 3% on 1 January 2024. The changes have been proposed during the 2023 Session Laws of Kansas in Chapter 49 of House Bill 2090.

Upcoming Deadlines

Italy – Annual prepayment

Domestic and foreign insurance companies operating in Italy are reminded of the upcoming deadline for the annual advance payment. The prepayment is due on 16 November and is calculated as a prescribed percentage of the previous year’s IPT and anti-racket liabilities (excluding IPT paid on motor third-party liability insurance). The rate for the 2024 prepayment calculation is 100% of the previous year’s taxes.

The 2024 prepayment can be offset against the IPT liabilities (excluding IPT on motor third-party liability) starting from February 2024. Prepayment cannot be used against anti-racket liabilities, even though anti-racket forms part of the basis of calculation of the prepayment.

Belgium – Annual IPT prepayment

Insurers registered in Belgium are reminded that the annual IPT prepayment for the period of December 2023 is due to the Belgian tax authorities on 15 December 2023. The prepayment amount is calculated based on the submitted October IPT return, for premiums that incur rates of 9.25% and 1.40% only. The premiums that fall under the rates of 4.40%, 2%, and 1.1% should not be included in the prepayment calculation.

The 2023 prepayment can be offset against the IPT liabilities until February 2023. If the prepayment amount is not fully utilised by then, an application for refund shall be submitted by the end of the calendar year in which the prepayment should have been used.

Spain – Annual IPT Declaration

Insurers registered in Spain are reminded that the 2023 annual IPT return (Modelo 480) is due by 20 January 2024. The return should detail the monthly liabilities arising throughout 2023 and the payments of which should have been made on a monthly basis.

Italy – RAVF provisional payment

Insurance companies writing motor third-party liability and/or pleasure craft liability insurance in Italy are reminded of the upcoming deadline for the provisional Road Accident Victims Fund (RAVF) payment. This payment is calculated as 2.5% of the calculation base and is due by 31 January 2024. The calculation base is formed of a specific percentage of premiums from two years before.

If the provisional RAVF payment will be higher than the total amount of RAVF contribution calculated for the year, which is due in September 2024, the insurance company can request a refund from the Consap.

GRM is running a webinar with TMF Group: Evolving compliance changes for multinationals – Insurance Premium Taxes. Join Joseph Finbow, IPT assurance director and Karen Jenner, IPT client engagement director for a webinar around Insurance Premium Tax considerations for multinational insurance programmes.

Thursday 16 November at 3pm GMT. More details and registration here.