France is widely regarded as one of the most complex Insurance Premium Tax (IPT) jurisdictions in Europe. Unlike many EU markets where a single tax authority and a single tax rate apply, France operates a fragmented system: multiple tax authorities, class-specific tax rates, and a wide array of parafiscal surcharges layered on top of the headline tax.

This blog explores the French IPT framework in full: the tax authorities responsible for collection, the standard and reduced rates, the CATNAT (natural catastrophe) regime and its interaction with the Major Risk Prevention Fund (MRPF), the terrorism levy, the motor and agricultural guarantee funds, and the various URSSAF-administered social contributions.

It also covers the specific treatment of France’s overseas departments and collectivities (the DOMs and COMs).

• Three separate bodies are involved in collecting IPT-related charges in France:
  • The French Tax Office (DGFiP – Direction Générale des Finances Publiques) for the IPT itself, lus MRPF, TERR, NACF and also HCP
  • The FGAO (Fonds de Garantie des Assurances Obligatoires de dommages) for certain parafiscal charges
  • URSSAF for social-security-linked contributions on health-related business
• France’s IPT (Taxe Spéciale sur les Conventions d’Assurances or TSCA) rate ranges from around 0% to 33% depending on the risks covered by the policy, though 9% is the rate most commonly cited for general liability and property risks.
• CATNAT (natural catastrophe) cover is compulsory in France and is subject to its own additional premium. There is an obligation to pay IPT and a surcharge, the Fonds de Prévention des Risques Naturels Majeurs (informally called the “Fonds Barnier” or Major Risk Prevention Fund, MRPF) on CATNAT premium
• The terrorism charge (commonly called the “taxe attentat” or TERR), which funds the FGTI (Fonds de Garantie des victimes des actes de Terrorisme et d’autres Infractions), was formerly collected via the FGAO but has, since 2024, been brought within the standard IPT compliance process, meaning it is now paid to the French Tax Office and declared alongside IPT on the same return.
• Numerous other surcharges apply including the National Guarantee Fund (NGF), the Automobile Annuity Contribution (CAR), the Contribution of Insurance Companies (CIC), the National Agricultural Catastrophe Fund contribution (NACF), and for health-related business, a cluster of URSSAF contributions (CMU/TSA, CCO, ASC, HPC).
• France’s overseas territories are split into two very different regimes: the DOMs (Guadeloupe, Martinique, French Guyane, La Réunion, Mayotte), which broadly follow mainland rules (with reduced rates in French Guyane and Mayotte), and the COMs, which operate independent, locally-administered tax regimes.

IPT tax authorities in France

The three tax bodies in France in charge of collecting IPT and parafiscal charges are:

• The French Tax Office (DGFiP – Direction Générale des Finances Publiques)
• Compulsory Damage Insurance Guarantee Fund (FGAO — Fonds de Garantie des Assurances Obligatoires de Dommages)
• Union for the Collection of Social Security Contributions and Family Allowances (URSSAF — Union de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiales)

It’s worth noting that the mainland tax office is in charge of IPT collection for some of France’s overseas territories, but some overseas territories have their own tax offices, adding to the complexity of IPT in France.

What is French Insurance Premium Tax?

The French Insurance Premium Tax is formally known as the Taxe Spéciale sur les Conventions d’Assurances, (TSCA), governed by Articles 991 to 1004 bis of the French General Tax Code (Code Général des Impôts, CGI).

It applies to insurance premiums covering risks located in France, regardless of where the insurer is established.

Unlike jurisdictions with a single flat rate, French IPT rates vary considerably by class of business:

• 33% for compulsory motor third-party liability insurance (land motor vehicles)
• 30% for fire insurance generally
• 24% for fire insurance underwritten via caisses départementales
• 19% for leisure boat insurance (maritime/river)
• 18% for non-compulsory motor vehicle risk insurance
• 4% for legal expenses insurance
• 12% for certain professional/seasonal-use fire risks
• 9% standard rate
• 7% for non-exempt agricultural fire risks
• 0% for various exempt classes (export credit insurance, certain marine/aviation risks, agricultural risks, among others)

The taxable base is the premium (or “cotisation”) payable by the policyholder, including ancillary fees that form part of the premium consideration.

Because IPT sits alongside, rather than instead of, the various parafiscal surcharges described below and because the compulsory CATNAT premium that is itself subject to IPT, the effective tax burden on a French insurance premium is frequently well above the headline IPT rate alone.

The applicable IPT rate also varies according to the location of the risk within France’s overseas territories. For the DOMs (Guadeloupe, Martinique, French Guyane, La Réunion, and Mayotte), the mainland rate structure generally applies, but at a reduced level for French Guyane and Mayotte, where IPT rates are halved compared to their mainland equivalents.

The COMs (French Polynesia, Saint Martin, Saint-Pierre-et-Miquelon, Saint-Barthélemy and Wallis and Futuna) and New Caledonia, by contrast, fall outside the French mainland tax framework entirely: they operate their own independent IPT regime (if any), with rates set locally and not harmonised with mainland French rates or with one another, meaning insurers must verify the applicable rate on a territory-by-territory basis.

What is the Terrorism Charge (TERR)?

The French terrorism charge, informally known in the market as the “taxe attentat” or TERR, is a flat rate parafiscal contribution levied on insurance contracts that include property damage cover (including airplanes, ships and land vehicles) and, from 2027, general liability risks.

It funds the Fonds de Garantie des victimes des actes de Terrorisme et d’autres Infractions (FGTI), which compensates victims of terrorism and, since its remit was broadened over the years, victims of a wider range of criminal offences (including homicide, sexual assault, and domestic violence).

Key features of the terrorism charge:

• It is levied per contract per year, not as a percentage of premium
• It applies wherever a policy includes property damage cover (immoveable and moveable properties, airplanes, ships and land vehicles) and general liability cover from 2027.
• As of 2027 the rate is capped at EUR 15 per contract. The current fixed rate is EUR 6.50 (from 2024), increasing to EUR 8.50 from 2027
• FGTI also collects the TERR charge from overseas territories

Historically, the charge has increased steadily: EUR 4.30 in 2016, EUR 5.90 from 2017 (following the 2015–2016 terrorist attacks), EUR 6.50 from 2024, and EUR 8.50 from 2027. The FGTI has cited a growing structural funding gap as the rationale behind successive increases, and the raised statutory ceiling suggests further rises are plausible in future years.

What is CATNAT premium and how is IPT calculated on this premium?

As some countries either introduce or consider introducing mandatory natural catastrophe insurance (often referred to as CATNAT), France is ahead of the curve. It has had a compensation scheme in place for coverage of property against natural disasters since 1982, financed through a compulsory additional premium (surprime or CATNAT premium) added to most property and motor damage policies.

The CATNAT premium funds the extended guarantee against natural disaster risks in relation to insurance contracts for fire damage, other property damage, land motor vehicles, and operating losses, as provided under Article L. 125 of the Insurance Code.

It is calculated by reference to the underlying base premium. Historically, the CATNAT premium rate was set at 12% of the base premium for home and commercial property contracts, and at 6% or 0.5% for motor contracts, depending on whether a fire coverage element was present.

From 2025, these rates increased substantially, reflecting the rising frequency of natural catastrophes and the growing volume of compensation payable by the Caisse Centrale de Réassurance (CCR). The current rates stand at 20%, 9%, and 0.75% respectively.

The CATNAT premium, as an additional premium, is itself subject to IPT. A relatively new position has recently emerged regarding how IPT should be calculated on this additional premium. Market practice, until now unchallenged by the French Tax Office (DGFiP), has been to apply IPT to the full amount of the CATNAT premium.

However, in a letter received by Sovos in response to a query raised with the French Tax Office, the authority clarified that the amount attributable to the MRPF (currently 12% of the CATNAT premium) may be deducted from the additional premium before determining the IPT basis. This position is consistent with the interpretation issued by the Fédération Française de l’Assurance (FFA).

A further point of ambiguity concerns the applicable IPT rate on the CATNAT premium itself, and this has not been resolved despite repeated queries raised with the French Tax Office. The uncertainty stems from how the additional premium’s coverage is interpreted: whether it represents a standalone natural disaster risk, in which case the default 9% IPT rate would apply, or whether it should instead mirror the base premium and its underlying coverage, in which case the IPT rate applicable to the base premium would carry through to the CATNAT premium. Market practice varies accordingly; where insurers follow the latter approach, this is referred to as the alternative CATNAT IPT calculation.

This ambiguity extends further still in relation to risks located in France’s overseas territories, where a halved IPT rate applies under the general rules. It remains unclear whether this reduction should also carry through to the CATNAT premium, and if so, whether the answer depends on which of the two approaches above is followed.

Find out more about France’s CATNAT regime.

H2: What is the Major Risk Prevention Fund (MRPF) and how it interacts with CATNAT premium?

The MRPF (Fonds de Prévention des Risques Naturels Majeurs, informally the “Fonds Barnier”) finances natural-risk prevention measures, including property buy-back/expropriation schemes in high-risk zones and risk-prevention planning support for local authorities. Its current rate is 12% of the CATNAT premium.

MRPF is declared on a monthly basis to the French Tax Office and included in the monthly IPT return as a separate section.

What other parafiscal charges apply to insurance premiums in France?

Beyond IPT, the terrorism charge (TERR), and the CATNAT/MRPF interaction described above, French insurers are subject to a further set of surcharges depending on class of business and the nature of the risk covered.

National Guarantee Fund (NGF / FGAO)

The FGAO (Fonds de Garantie des Assurances Obligatoires de dommages), referred to here as the National Guarantee Fund, is funded in part by a contribution collected from insurers on compulsory damage insurance classes, including motor third-party liability. The FGAO compensates victims of accidents caused by uninsured or unidentified parties.

There are three surcharges to be paid to FGAO:

• National Guarantee Fund (NGF): NGF is payable on Motor Third-Party Liability (MTPL) policies at a rate of 1.2%.
• Automobile Annuity Contribution (CAR): MTPL policies are also subject to the Contribution pour l’Automobile Rente (CAR), sometimes referred to as the Rente charge, which funds annuities payable to road-accident victims suffering bodily injury. The rate is 0.8% on the taxable premium.
• Contribution of Insurance Companies (CIC):

From 2024, this contribution replaced the previous annual charge, which FGAO had determined based on the proportion of the insurer`s premium amount in the total premium amount of MTPL policies, and which was levied via a letter. CIC is declared monthly by insurers on MTPL policies. Its current rate is 0.58% of the taxable premium.

Read our dedicated blog on the taxation of motor insurance policies in France to learn more.

National Agricultural Catastrophe Fund (NACF)

A separate parafiscal contribution applies to agricultural insurance business, funding compensation arrangements for agricultural catastrophe risk. This regime is separate from the CATNAT regime as described above, and hence the policies covering agricultural risks are not subject to CATNAT premium.

Historically, the NACF rate was set at 5.5%, which has been increased to 11% from 2023.

NACF is declared on a monthly basis to the French Tax Office and included in the monthly IPT return as a separate section.

Contributions on health-related insurance business

Insurance and mutual/provident institutions writing health-related business (complementary health cover, “assurance maladie complémentaire”) in France are subject to a cluster of contributions, most of which are collected by URSSAF rather than the French Tax Office.

These sit outside the standard IPT framework, with one exception, the HCP, but function, in practice, as a further layer of premium-based taxation.

• Taxe de Solidarité Additionnelle (CMU/TSA): Often still referred to in the market by its earlier name, the “CMU contribution” (Couverture Maladie Universelle); this is now formally the Taxe de Solidarité Additionnelle (TSA). It applies to premiums for complementary health insurance contracts (covering both medical expense reimbursement and complementary daily allowances), at rates that vary depending on whether the contract qualifies as a “responsible and solidarity-based” contract (contrat responsable et solidaire) or a non-qualifying contract. The applicable rates vary depending on the coverage and can be either 6.27% or 13.27% or 14% or 20.27%. The TSA is declared and paid quarterly to URSSAF.
• Contribution Complémentaire (CCO): This contribution was established for the year 2026, payable by the organizations mentioned in paragraph I of Article L. 862-4 of the Social Security Code. It applies to premiums where the inception date is on or after 1 January 2026. The scope of the coverage is the same as for CMU/TSA. The rate is 2.05% and declared and paid on a quarterly basis to URSSAF.
• Additional Contribution (ASC): ASC is due on all insurance premiums that are subject to TSA. This contribution was originally introduced as a temporary measure from 2019 until the end of 2021.However, it has since been extended annually, and is expected to continue unless an express legislative provision abolishing it. The scope of the coverage is the same as for CMU/TSA. The rate is 0.8% and declared and paid on an annual basis (on the fourth quarterly CMU/TSA return) to URSSAF.
• Health Professional Contribution (HPC): This contribution is not settled to URSSAF but to the French Tax Office as part of the monthly IPT return. The rate is fixed at EUR 15, EUR 20 and EUR 25 depending on the profession covered, such as specialists with the highest rate, other physicians and dental surgeons, and others with the lowest rate.

As a general principle common to URSSAF-administered contributions, liability typically depends on where the insured person is resident (rather than the insurer’s location).

Contributions to URSSAF are payable if the insured person is resident in Mainland France, French Guyane, Martinique, Guadeloupe, La Réunion, Saint Martin, Saint Barthélemy and Mayotte.

IPT reporting and settlement in France

France’s Tax Office is responsible for collecting all the Insurance Premium Tax when it is due. The tax point date is the maturity date. Reporting of Insurance Premium Tax is made through the SD-2787 module, online. Similarly to IPT, MRPF, TERR, NACF and HPC surcharges are declared on the monthly IPT return.

The FGAO collects the charges due on Motor Third Party Liability policies. Submission of these funds is made monthly through the tax body’s online portal.

URSSAF collects the tax due on insurance class 2 sickness (and the wider TSA/CMU, CCO, ASC), with applicable taxpayers having to submit online every quarter. The fourth quarterly return includes the declaration of the annual ASC contribution.

IPT considerations for French territories

When it comes to French overseas territories, a distinction must be made between so-called Départements et Régions d’Outre-Mer (DOMs), and Collectivités d’Outre-Mer (COMs) and New Caledonia.

Départements et Régions d’Outre-Mer (DOMs)

The DOMs comprise Guadeloupe, Martinique, French, Guyane, La Réunion, and Mayotte. This first group is treated the same as mainland France for premium tax purposes. Premiums covering risks located in these territories should be declared in the same way, although with an asterisk for French Guyane and Mayotte, where the IPT rates applicable are reduced by half.

Collectivités d’Outre-Mer (COMs) and New Caledonia

The Collectivités d’Outre-Mer (COMs) are the second group of overseas territories. COMs, under Article 74 of the French Constitution, comprise French Polynesia, Saint Martin, Saint-Pierre-et-Miquelon, Saint-Barthélemy and Wallis and Futuna. New Caledonia is not technically a COM because it has its unique constitutional status.

For each of them, the local tax authority can levy taxes on insurance premiums independently of mainland France. As such, most of them have set up their own IPT regimes, often requiring insurers to appoint a fiscal representative. It’s worth adding that some French parafiscal charges may also be due.

Here’s an example of how these territories differ, and the complexity that it can cause:

• French Polynesia: 10% IPT rate
• New Caledonia: 7% IPT rate and a levy funding its own agricultural/natural calamities agency
• Saint Martin: general IPT rate of 5%, but 10% applied for maritime and lagoon navigation of sports or pleasure boats and for land motor vehicles and 15% for fire insurance, that might be reduced

Some of the surcharges, such as the TERR charge, are collected by mainland official bodies.

If an insurer is operating in France as well as some of its overseas territories, it’s essential to know the nuances of each area’s IPT requirements for compliance.

Legal basis

The legal basis for French Insurance Premium Tax is Articles 991 to 1004 bis of the General Tax Code (Code Général des Impôts, CGI), which set out the scope, rates, and exemptions.

The terrorism charge is governed by Article L. 422-1 et seq. of the Insurance Code (Code des Assurances), with its current and future amounts set by ministerial arrêté, most recently the arrêté published in the Official Journal on 30 July 2026, following the raised statutory ceiling introduced by the Finance Law for 2026.

The CATNAT regime is established under Articles L. 125-1 et seq. of the Insurance Code, introduced by the law of 13 July 1982.

The MRPF/Fonds Barnier levy on the CATNAT surprime was historically set under the same framework, with its budgetary treatment altered by the Finance Law for 2021 (CGI Article 235 ter ZE).

The FGAO’s role and funding are set out in Articles L. 421-1 et seq. of the Insurance Code.

The URSSAF-administered contributions on complementary health insurance (TSA/CMU and related contributions) are codified primarily under Article L. 862-4 of the Social Security Code (Code de la Sécurité Sociale).

What are the IPT challenges in France?

The main compliance challenges in France stem from the sheer number of moving parts: three separate tax authorities, dozens of class-specific IPT rates, several parafiscal surcharges each with their own base, rate, and filing schedule, and a fast-evolving legislative environment in which rates and thresholds change via annual Finance Laws and ministerial decrees rather than only through primary legislation.

The terrorism charge is a good illustration of this pace of change: it has increased four times since 2016, most recently confirmed for a rise to EUR 8.50 from 1 January 2027, with the statutory ceiling now raised to EUR15, leaving scope for further increases without a fresh act of parliament.

The CATNAT/MRPF interaction adds a further layer of complexity, particularly with the newer development around deducting the MRPF amount from the CATNAT IPT base, which requires insurers to review and potentially reconfigure their premium tax calculation logic.

The URSSAF-administered contributions (TSA/CMU, ASC and CCO) sit entirely outside the IPT framework, meaning insurers writing health business must manage a parallel compliance track, with separate registration, separate quarterly filings, and separate rate structures depending on whether a contract qualifies as “responsible and solidarity-based.”

Finally, the DOM/COM distinction means that insurers operating across French overseas territories face, in effect, several different tax regimes layered on top of the mainland rules, each with its own registration, fiscal representation, and filing requirements.

How Sovos helps with France IPT and parafiscal compliance

Sovos’ IPT Managed Services helps insurers navigate the full scope of French Insurance Premium Tax and parafiscal compliance from:

• IPT registration and filing with the French Tax Office
• FGAO-administered surcharges on MTPL policies
• URSSAF-administered contributions on health-related business, including the specific requirements applicable to the DOMs and COMs.

Need to ensure compliance with the latest French IPT and parafiscal regulations? Get in touch with our tax experts today.