IPT France

Disclaimer: This article was accurate at the time of publishing. To obtain the most up-to-date information, please get in touch with our local experts.

Find out more about IPT.

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

Except in the case listed by the law, French IPT is due on all insurance contracts concluded with French or foreign companies and covering risks in France with a policy holder and/or a beneficiary French resident.

The basis for the calculation of French IPT is very broad. In addition to the premium, it includes all amounts and incidentals paid to the insurer or fees for agents who are actively involved in the recovery of claims. 

French IPT Liability

As with most other European countries, the insurer is liable for the tax. In specific cases, French tax authorities also request the appointment of a fiscal representative which will be responsible for the calculation and payment of IPT. 

French IPT Rates

 The applicable IPT rate depends on the type of insurance contract and risk covered. 

Principal French IPT rates include:

  • General liability 9%;     
  • Motor 18%;   
  • Fire 30% (reduced in specific cases such as for industries or in agriculture).

There are a number of variations to the rates above.

Life insurance cover is exempt from French IPT. However, insurers providing Life cover in France must nevertheless appoint a local fiscal representative in charge of the filing of the declarations. 

French Parafiscal Charges

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

  • Tax on health insurance (TSA)
  • 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 a monthly declaration payable on the 15th day of the following month

Find out more about IPT.