We are circulating this article to advise the Lloyd's market that Lloyd’s Europe Italian premium tax advance payment will be made to the Italian tax authority on 16 November 2022.
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 100% of the premium tax paid in the previous year, i.e. 2021 for this 2023 advance payment. The advance payment is then offset/refunded against tax liabilities arising in the following year.
Therefore, this year we will be calculating the 2023 advance payment at 100% of Italian premium tax paid by Lloyd’s Europe in 2021.
Please note that if your syndicate is in run-off, an advance payment of Italian premium tax may still be due if taxable premium was signed for that syndicate in 2021.
For further information on the application of the Italian premium tax advance payment, please contact Lloyd’s Tax Department at taxdept@lloyds.com.