Annual reporting requirements vary from country to country, making it complex for cross-border insurers to collect the data required to ensure compliance.
Italy has many unique reporting standards and is known for its bureaucracy across the international business community. Italy’s annual reporting is different due to the level of detail required. The additional reporting in Italy requires an in-depth list of policies and details including inception and expiry dates, cash received dates, policyholders’ names, addresses, fiscal codes and premium values. This makes the annual reporting a significant undertaking.
Contracts and Premiums Report – due by 16 March each year in respect of previous calendar year
The Italian legislation and regulations require insurance companies writing business in Italy to submit annual reports with the purpose of collecting information that facilitates the tax authorities’ control of activities on taxpayers.
These reports should list all the insurance contracts in place in the relevant year with a policyholder (individual or entity) subject to Italian taxes. Policies covering Liability, Assistance and any risks written as ancillary to an underlying Liability or Assistance policy don’t need to be included in the report.
If there were no contracts in place in the previous calendar year, there is no requirement to submit a Nil report.
Claims Report – due by 30 April each year in respect of previous calendar year
Claim payments made during the previous year in favour of beneficiaries (individuals or entities) who possess an Italian fiscal code must be reported to the Italian tax authorities by the end of April.
Details required in the report include:
- Claim reference number
- Date of payment
- Amount paid
- Beneficiary’s fiscal code
- Details of any third parties involved in handling the compensation
If there are no claims to be reported for the previous year, Nil reports are not required.
Motor Report – part to the annual IPT report due by 31 May each year in respect of previous calendar year
As an integral part of the annual Insurance Premium Tax (IPT) return due by the end of May, insurance companies writing compulsory motor third-party liability must report the amount of IPT paid in the previous year to each of the Italian provinces. Details required include province policy number, fiscal code, vehicle plate number, premium, IPT rate and IPT.
Why planning ahead of the reporting season is vital
The additional reporting in Italy requires that certain elements are present before submission. To submit the Contracts and Premiums report an insurance company needs:
- Active PEC address – Italian certified email address
- Access to the SID Channel – System of transmission of data
- Legal representative – SID Channel registration is linked to the company legal representative. If the legal representative ceases to act as such, their details need to be revoked, and a new application processed. This is a lengthy process that takes a few weeks therefore planning ahead of the deadlines is of great importance
- Fiscal codes – Required for all reports. Fiscal codes comprise of 16 digits for individuals and 11 digits for legal entities. Invalid fiscal codes are one of the main reasons reports are rejected. There is a code validator available on the Revenue Office website to check if a fiscal code exists and if it is valid. The validator can be accessed here: https://telematici.agenziaentrate.gov.it/VerificaCF/Scegli.do?parameter=verificaCf
Many insurance companies work with third parties, and the policy information they collate might not always include all required details. Incomplete and incorrect data prevent the successful submission of the annual reports and can lead to costly fines and reputational damage.
Navigating annual reporting alongside regular monthly and quarterly reporting can feel overwhelming. The more that can be prepared in advance, the smoother the reporting process. Understanding Italy’s specific annual reporting requirements will ensure insurers remain compliant and avoid any unnecessary delays or corrections.
Need to ensure compliance with the latest regulations in Italy? Get in touch with our tax experts for more information.