Tax Alert – France – Changes to Insurance Premium Tax
We can confirm that from the 1st January 2019 there are various changes to insurance taxes in France.
The first is that insurance guaranteeing the payment of life insurance premiums in case of death (payment protection insurance) are now no longer exempt from insurance premium tax. From the 1st January 2019 such policies will be taxed at the standard rate of 9.00%.
This change can be found in Article 123 of LAW 2018-1317 (referring to French insurance taxes – link)
The other is that from the 1st January 2019, the Le Fonds de Garantie des Assurances Obligatoires de dommages (FGAO) rate applicable to motor liability policies has increased from 12.00% to 14.00%.
This change can be found in Article 124 of LAW 2018-1317 (referring to French insurance taxes – link)
As always, if you have any questions please get in touch with a member of the team at email@example.com