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15 February 2018

Italy amends Insurance Premium Tax provisions

In January 2018, the Italian Ministry of Economic Development settled the contribution rate for the road accident victims' fund, applicable on civil liability insurance for motor vehicle and motor vehicle damage. According to the Decree, the contribution rate applicable for insurance premiums has been confirmed at 2.39975% from 1 January 2018.

In addition, the 2018 Budget Law, approved by the Italian Parliament on 23 December 2017, has introduced the following changes with reference to Insurance Premium Tax (IPT):

  • The IPT advance payment (determined as a percentage on the IPT due for the previous fiscal year) has been increased to 58% in 2018, to 59% in 2019 and to 74% from 2020 onwards. Also, the deadline to pay the advance payment has been postponed from 16 May to 16 November 2018.
  • The 2018 Budget Law has provided that insurance policies underwritten on or after 1 January 2018 covering natural disasters affecting residential real estate are exempt from IPT and the contribution to the solidarity fund for victims of extortion and usury (previously, the IPT rate was 21.25% plus the 1% contribution).

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Studio Legale Tributario, Milan

  • Marco Ragusa
    marco.ragusa@it.ey.com

Ernst & Young LLP (United Kingdom), London

  • David Bearman
    dbearman@uk.ey.com
  • Tom Hilverkus
    thilverkus@uk.ey.com
  • Russell Brown
    rbrown8@uk.ey.com

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