The 2024 Finance Budget Law, announced on December 30, 2023, is set to revise Article 995 of the General Tax Code (GTC) and will have an impact on insurance contracts that receive exemption from insurance premium tax (IPT) in France.
In 2020, a new exemption was implemented as of January 2021 up until the end of 2023 for insurance contracts covering risks of all sorts relating to land motor vehicles whose only energy source is electricity and whose registration certificate was obtained during the indicated timeframe.
The 2024 budget law extends this exemption with certain limits:
a) For the vehicles registered before 31 December 2023:
75% exemption applies, i.e. 25% of the IPT is payable, for premium amounts with maturity date between 1st January and 31st December 2024.
b) For the vehicles registered between 1st January and 31st December 2024:
75% exemption applies, i.e. 25% of the IPT is payable, for a 24 month period effective as of the date of the registration.
The exemption applies to the first contract taken out after the issuance of the registration certificate. The exemptions further also apply to the portion of the premium that relates to compulsory insurance obligation (Class 10) .
