A new decree changes how Italy collects RCA (motor third-party liability) insurance premium tax, splitting the payment between the State and the provinces.
From payments made in February 2027, covering the January 2027 period, the State collects the base 12.5% RCA rate for provinces and metropolitan cities in the ordinary-statute regions, plus Sicily and Sardinia. The special-statute territories, Trento, Bolzano, Friuli-Venezia Giulia, and Valle d’Aosta, are unaffected and continue to receive the full RCA IPT amount as before. Provinces retain the power to raise the rate above the 12.5% base, and the surcharge continues to be collected for the provinces as it is today.
Current rules
Provinces collect RCA IPT at a standard rate of 12.5%, which they may raise or lower by up to 3.5 percentage. A few provinces, including Rome, apply a lower, preferential rate in certain circumstances.
Insurers report collected RCA amounts in separate sections of the annual IPT return, one page per province, without distinguishing between the 12.5% base rate and any provincial adjustment. RCA is also excluded from the annual IPT prepayment calculation, and the general IPT prepayment can be offset against monthly IPT liabilities.
Open questions
The amendment is brief and leaves several points unclear ahead of implementation, for example:
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How the rules apply where a province’s current rate sits below 12.5%.
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How insurers should declare RCA IPT on the annual return from 2027 onward.
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Whether a prepayment obligation now extends to the State-directed portion of RCA.
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If so, whether insurers can offset that prepayment against the new monthly State payments.
The decree itself calls for a further measure from the director of the Agenzia delle Entrate (Italian Revenue Agency) to set out how insurers pay both the State’s share and any provincial surcharge. That measure, and any related guidance from the Agenzia delle Entrate, is where these questions will most likely be resolved. Where a fix needs a rule change rather than guidance, further legislative amendment may follow. Sovos is monitoring developments and will publish updates as clarity emerges.
