Deep Dive – Insurance Premium Tax in France

Khaled Cherif
May 18, 2022

France is known for its challenging Insurance Premium Tax (IPT) filing system. Understanding which tax authorities you need to register with, file with and talk to when you have questions is essential to meeting your business’s IPT compliance obligations. In this blog, we identify France’s IPT tax authorities and explain what makes IPT so different in this European country.

IPT tax authorities in France

There are three different tax bodies in France in charge of collecting IPT. They are the Business Tax Department (Service des Impôts des Entreprises) (SIE), the Compulsory Damage Insurance Guarantee Fund (Fonds de Garantie des Assurances Obligatoires de Dommages) (FGaO), and the Union for the Collection of Social Security Contributions and Family Allowances (Union de Recouvrement des Cotisations de Sécurité sociale et D’allocations Familiales) (URSSAF).

Dealing with France’s tax authorities can be challenging, especially once an insurance company obtains authorisation from the Prudential Control and Resolution Authority (Autorite de Controle Prudentiel et de Resolution) (ACPR).

Why is France a challenging territory for insurance companies?

  1. Registration: Each insurance company needs to be registered with all three tax authorities, starting with the SIE, who releases a Tax ID number (Numero SIRET). Once the Tax ID is obtained, the insurer can ask to be registered with the FGaO if its policies cover risks from insurance classes 3 to 10. In cases where the client sells insurance class 2 sickness products, then registration with the URSSAF is required, and a second Tax ID is issued.
  2. Location of Risk: When it comes to the location of risk, the mainland office is also in charge of IPT collection for some of the overseas territories while others have their own tax offices.
  3. Tax Settlement and reporting process:
      • The SIE collects all the IPT where it’s due. Reporting is made through the SD-2787 module. This paper version of this module is sent to SIE monthly although this process will change to a mandatory online submission with a direct debit from the 1 February 2023.
      • The FGaO is in charge of collecting the Terrorism Contribution for the National Guarantee Fund and the Automobile Annuity Contribution due on Motor Third Party Liability policies. Submission is made through the FGaO portal monthly.
      • The URSSAF is the body in charge of collecting the taxes due on insurance class 2 sickness. An online submission is due quarterly.
  1. A different tax rate is used ranging from 6.27% to 35% and a different fixed charge from €5.90 to €25.00 depending on the type of insurance policy.
  2. Cancellation and mid-term adjustments are allowed. The treatment differs from one office to another.

Take Action

Have questions about IPT compliance? Speak to our experts or download our e-book, Indirect Tax Rules for Insurance Across the World.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Khaled Cherif

Khaled joined Sovos in 2017 and is a principal compliance services representative. He is responsible for the delivery of indirect tax compliance services for a portfolio of European insurers.
Share This Post

EMEA IPT
November 23, 2022
Fire Brigade Tax in Slovenia

Problems encountered with Fire Brigade Tax rate increase in Slovenia Slovenia’s Fire Brigade Tax (FBT) has changed. The rate increased from 5% to 9%. This came into effect on 1 October 2022. The first submission deadline followed on 15 November 2022. Unfortunately, the transition has been plagued by problems. We discuss some issues and how […]

E-Invoicing Compliance EMEA
November 22, 2022
E-invoicing and Fiscal Digitization in Africa

African countries are following e-invoicing and continuous transaction control trends implemented rapidly by many countries around the globe. Each country in the continent is developing their variation of a tax digitization system. This means there is currently no standardisation with compliance requirements differing in each jurisdiction. A common transaction reporting feature among African countries is […]

EMEA VAT & Fiscal Reporting
November 22, 2022
Expert Series Part IV: New Roles for IT in the Wake of Expanding Global Mandates

Part IV of V – Ryan Ostilly, vice president of product and GTM strategy EMEA & APAC, Sovos Click here to read part III of the series.   Government-mandated e-invoicing laws are making their way across nearly every region of the globe, bringing more stringent mandates and expectations on businesses. Inserted into every aspect of your […]

E-Invoicing Compliance EMEA
November 16, 2022
Denmark E-Invoicing Requirements

New bookkeeping law – Lov om bogføring On 19 May 2022, the Danish Parliament passed a new bookkeeping law – Lov om bogføring – introducing requirements for companies to use a digital bookkeeping system. Section 16 of the Law requires many Danish companies to use a digital bookkeeping system and make their bookings electronically. The final […]

EMEA VAT & Fiscal Reporting
November 15, 2022
UK: Updates to Making Tax Digital for VAT

Update: 3 November 2022 by Russell Hughes Making Tax Digital – Filing VAT Returns through Online VAT Account to become redundant From Tuesday 1 November 2022, businesses filing VAT returns in the UK will no longer be able to submit via an existing online VAT account unless HMRC has agreed to an exemption from Making […]