1 September 2014

Insurance companies are required by the Italian Insurance Premium Tax (IPT) legislation to maintain an IPT Book. If appointed, the obligation is also extended to the fiscal representative of the Freedom of Services (FoS) insurer writing business in Italy. FiscalReps fulfils its requirement to maintain a copy of the IPT book based on the monthly data provided by its clients.
The premiums collected should be recorded in this IPT Book in chronological order, providing the following information:
  • policyholder details
  • policy details, such as contract number, inception date, expiry date and risk covered
  • premium details, such as the date of receipt and the amount cashed, the IPT and parafiscal rate (if applicable) and the amount due
As specified in the return guidelines, issued by the Italian Tax Authorities, the IPT submission must be based on the IPT Book maintained by the insurance company. Therefore, if a tax audit is carried out by the Italian Tax Authorities, a copy of the IPT Book may be requested from the insurance company. This is to reconcile the amounts recorded in the IPT Book against the returns submitted and the payments made.
In accordance to the Italian IPT law, penalties apply in the following cases:
  • not keeping an IPT Book
  • not recording premiums that are subject to IPT
  • recording incorrect information, with regards to the premium amounts and risks covered
  • not providing the IPT Book in response to the Tax Authorities’ request
As the implications of non-compliance are significant, we take this opportunity to invite our clients to ensure their internal records are up to date and complete. This is to guarantee FiscalReps possesses the relevant information needed to maintain an accurate copy of the IPT Book, in order to settle the correct amount of IPT and parafiscal taxes on their behalf.