Deep Dive – Insurance Premium Tax in France

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.

4. 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.
5. Cancellation and mid-term adjustments are allowed. The treatment differs from one office to another.