Lloyd's Italian Premium Tax Advance Payment 2021
This article is to advise the Lloyd's market of the payment of the Lloyd's Italian Premium Tax advance payment on 16 November 2020 .
We are circulating this article to advise the Lloyd's market that the Lloyd’s Europe Italian premium tax advance payment will be made to the Italian tax authority on 16 November 2020.
The advance payment of Italian premium tax is paid to the Italian tax authority on an annual basis and is a legal requirement for all insurers writing taxable risk in Italy. The advance payment will be collected from syndicates and is calculated as a percentage of the premium tax paid in the previous year, i.e. 2019 for this 2021 advance payment. The advance payment is then offset/refunded against tax liabilities arising in the following year.
The percentage rates to be used to calculate the advance payment for the next two tax years were approved by the Italian Parliament on 30 December 2018, and are as follows:
• 90% in November 2020 for tax year 2021
• 100% in November 2021 for tax year 2022 onward
Therefore, this year we will be calculating the 2021 advance payment at 90% of Italian premium tax paid by Lloyd’s Europe in 2019.
Please note that if your syndicate is in run-off, an advance payment of Italian premium tax may still be due if premium was signed for that syndicate in 2019.
For further information on the application of the Italian premium tax advance payment, please contact Lloyd’s Tax Department at taxdept@lloyds.com