This article is to inform the Lloyd's market that the Italian premium tax advance payment will be made to the Italian tax authority for Lloyd’s Europe and syndicates on 7 November 2024.
Background
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 risks in Italy. All Lloyd’s Italian business is written by Lloyd’s Europe; however, a small amount of business written by syndicates can still be subject to Italian premium tax due to the way the Italian premium tax rules work. For more information on how Italian premium tax applies, please consult Lloyd’s Crystal. The advance payment prepays part of the following year’s tax liability of the insurer, which is then offset or refunded against actual tax liabilities arising that year.
Calculation Method
The advance payment is calculated as 100% of the Italian premium tax paid in the previous year. In the case of the 2025 advance payment, this calculation is based on the premium tax paid on business processed by Lloyd’s Europe and syndicates in the 2023 calendar year.
Please note that syndicates in run-off are not exempt from the obligation to make an advance payment of Italian premium tax.
taxdept@lloyds.com