TMF Group on expected IPT and parafiscal changes in 2025

During its recent webinar IPT Compliance Challenges, TMF Group’s Christophe Bourdaire, looked at some of the challenges and hurdles faced by insurance companies to meeting increasing compliance obligations arising from global insurance programmes, and provided an overview of the expected IPT and parafiscal changes in 2025. Hungary – Additional IPT extended until end of 2025 Rate to increase from 2% to 3% (14% on income exceeding HUF48bn) for non-life insurance. Rate to increase from 1% to 2% (6% on income exceeding HUF48bn) for life insurance. Prepayment due by 10 December 2025 and based on premiums collected between 1 January 2025 and 30 November 2025. Two final settlements: 31 January 2026 (with return) and 31 July 2026. Ireland – MIICF levy reduced to 0% The Motor Insurers’ Insolvency Compensation Fund (MIICF) levy will no longer be applicable in Ireland with effect from 1 January 2025. The fund will soon reach its funding requirements so contribution can be suspended but law allows for reintroduction if necessary. The MIICF levy currently applies at a rate 1% of premium on class 10 business (motor third-party liability) and class 10 business written together with classes 1 (accident), 3 (motor hull) and/or 7 (goods in transit). Since 23 December 2023, FoS insurers have not contributed on MTPL premiums. Luxembourg – Motor Insurance Insolvency Fund New contribution on motor third-party liability risks – only due by local insurers and branches of non-EU insurers. Two calculations: 0.5% of annual MTPL premiums and 0.125% of the annual MTPL claims provisions. Contribution raised on the highest of the two calculations. Greece – IPT exemption on health insurance IPT exemption introduced for health insurance covering persons under 18 years old. All other health insurance remains subject to IPT at 15%. Approved in the 2025 budget. Lithuania – Supervisory Authority levy increase in 2025 Resident insurers: rate increase from 0.221% to 0.234% of GWP. Local branches of EU/EEA Insurers: rate increase from 0.111% to 0.117% of GWP. Not due from insurers writing under Freedom of Services regime. New rates effective 1 January 2025. France – CatNat premium increase Private/business property insurance: premium increase from 12% to 20% Motor insurance: Theft and fire premium: 6% to 9%. Damage premium (if theft and/or fire excluded): 0.5% to 0.75%. Effective 1 January 2025. Application on policies issued or renewed in 2025. Further proposal to increase the CatNat premium on an annual basis. France – proposal to increase Fire IPT from 7% to 12% Fire insurance typically subject to one of two different IPT rates: 30% for insurance of fire risks of a private property. 7% for insurance of fire risks of professional property (which excludes some professional activities). Proposal to tax fire risks for all professional property (except agriculture) at the rate of 12%, while fire risks related to administrative buildings of local authorities remain taxed at the rate of 7%. Business interruption consecutive to Fire to also be taxed at 12%. Effective date proposed 1 July 2025. Belgium – IPT filing changes in 2025 Online IPT filing implemented in 2025. Insurers writing under Freedom of Service is still authorised to file paper/pdf returns. Once registration procedures for foreign insurers available, online filing likely to be compulsory. New IPT form expected in 2026, with more details to be provided by insurers (e.g. negative premiums reported separately). Argentina – Impuesto Pais ending 25% tax due on premium paid within or from Argentina in foreign currency. Tax ending on 22 December 2024. Ethiopia – VAT due on insurance Insurance removed from VAT exemption (accept life and health insurance). Rate 15%. Effective 20 June 2024. Jordan – Insured and Beneficiaries Guarantee Fund Two taxes created at the rate of 0.5% each, one due by insured, one due by insurer. Effective 1 October 2024 (insured) and 1 January 2025 (insurer). Pakistan – Sales Tax increase Rate increased from 13% to 15% in Sindh Province. Effective 1 July 2024. Sierra Leone – Education Levy introduced Creation of a new tax of 0.5% applicable to all type of insurance. Effective 1 January 2024.

TMF Group on expected IPT and parafiscal changes in 2025

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