IPT France

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France Insurance Premium Tax Law

The French tax law for Insurance Premium Tax is contained within the French General Tax Codes.

Basis of French IPT Calculation

The basis for the calculation of French IPT is very broad. In addition to the premium, it can include fees for agents who are actively involved in the recovery of claims.

French IPT is based on the premium charged to the insured. The IPT is charged to the policy holder, based upon the renewal date of the insurance premium.

French IPT Liability

As with most other European countries, the insurer is liable for the tax. The French tax authorities also view the appointed fiscal representative as being responsible for the calculation and payment of IPT. Unusually, in certain circumstances, any intermediary may be held liable also.

France IPT Rates

Principal French IPT rates include:

  • General liability 9%;  
  •  Personal Accident 9%;  
  •  Credit 9%;  
  •  Motor 18%;  
  •  Health 7% or 9% depending on policy;  
  •  Construction 9%; and  
  •  Fire 30% (reduced for industrial).  

Life insurance cover is exempt from French IPT. However, Freedom of Services insurers providing Life cover in France must nevertheless appoint a local fiscal representative. This rep must file the equivalent of ‘nil’ returns with the French tax authorities.

Reinsurance and Marine is exempt from Insurance Premium Tax in France. There are a number of variations to the rates above. 

French Parafiscal Charges

An addition to French IPT, there is also an extensive range of additional insurance levies and charges, including:

  • Motor insurance;  
  •  National Guarantee Fund (Motor/Hunting);  
  •  National Agricultural Catastrophe Fund;  
  •  Common Fund for Victims of Terrorism on property insurance;  
  •  Social Security Fund; and  
  •  Natural Catastrophe Levy (Cat Nat). 

Payments of French Insurance Premium Tax

French IPT is payable 15 days following the month end.

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