Following the postponement of the 2025 budget bill from December 2024, on 15 February 2025, the Act on Finance for 2025 has been published in the French National Gazette.
For insurance Premium Tax (IPT) there are two notable measurements in this Act:
1.) Higher rate for fire insurance premium
A 12% rate is introduced for fire insurance policies covering properties permanently or exclusively used for professional purposes except for premium amounts for administrative buildings of local authorities, where the rate remains at 7%.
Furthermore, the higher rate of 12% is applicable for risks covering business interruption losses resulting from fire except for agricultural activities, where the rate remains at 7%.
2.) New exemption
Group insurance policies taken out by a public employer for the benefit of state or local civil servants as supplementary social protection is exempt from IPT.
The new measurement in point 2.) is applicable already while the new, higher rates should be applied to fire insurance premium amounts where the maturity date is on or after 1st July 2025.
