IPT Italy

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.

Italy Insurance Premium Tax Law

The Italian tax law for Insurance Premium Tax is contained within the Italian Financial Laws.

Basis of Italian IPT Calculation

The basis for the IPT calculation is the premium, without deductions, and all other amounts paid to the insurer.

Italian IPT Liability

The insurer is liable for the tax calculation and payment. EEA insurers operating on the Freedom of Services basis are required to appoint a local fiscal representative. This representative must keep detailed records of all insurance policies written in Italy by the insurer.

IPT Italy Rates

Principal Italian IPT rates include:

  • Fire & Property 21.25%; 
  • Liability 21.25; 
  • Personal Accident and Healthcare 2.5%; 
  • Travel assistance 10%; 
  • Motor 12.5%; and 
  • Other clauses 21.25%.

Life insurance cover has been exempt from Italian IPT since 2001. Freedom of Services insurers from Eurpope providing Life cover in Italy do not need to appoint a fiscal representative any longer.  However, problems with requirements on local payments and keeping records mean almost all insurers retain a tax rep. This rep must file the equivalent of ‘nil’ returns with the Italian tax authorities.

Reinsurance is exempt from IPT in Italy.

There are many of variations to the rates above. 

Italian Parafiscal Charges

In addition to Italian IPT, there are also a number of additional insurance levies and charges, including:

  • Emergency treatment fund; 
  • Road accident victims’ fund; and 
  • Solidarity fund for victims of extortion. 

Payments of Italian Insurance Premium Tax

Italian IPT is payable in the month following the payment of the premium. In certain circumstances Italian IPT is payable in advance too, based on 12.5% of the previous year’s Insurance Premium Tax liability.

Find out more about IPT.