7 January 2015
The MOT Contribution (Contribution Véhicules Terrestres à Moteur) due on motor insurance at a rate of 15% is being abolished in France for contracts issued on or after the 1 January 2015. As a consequence, two new IPT rates have been created to compensate for the abolition of this contribution:
15% IPT for contracts covering compulsory motor liability insurance related to land motor vehicles with a weight over 3.5t and vehicles used for agricultural activities
33% IPT for contracts covering compulsory motor liability insurance related to other land motor vehicles
This change has been introduced by the Article 22 of the Law 2014-1554 of the 22 December 2014. The underlying explanation of this change is the necessity to simplify the tax compliance and administrative burden for insurance companies. The contributions due to the Fonds de Garantie on these types of contracts remain applicable and declared on separate returns though.