25 April 2015
The San Marino IPT regime took effect 1 December 2013 and first payment is required next week by 30 April 2014 for insurance companies authorised to write insurance business into San Marino (31 May 2014 is the first payment deadline for unauthorised insurance companies). FiscalReps met the San Marinese tax authorities on 24 April 2014 to agree an interim solution to allow our clients to make payment by 30 April 2014 even though they are not registered for IPT. This will ensure our clients are compliant and avoid both interest and penalty charges.
The interim solution is as follows. FiscalReps’ clients must make payment to the tax authorities by 30 April 2014 in respect of Q1 2014 (including December 2013). This is a tight deadline and clients may wish to make payment directly to the tax authorities for Q1. FiscalReps is currently exploring whether the tax authorities will accept the value date of payment. If the deadline is missed then the tax authorities will impose a penalty of 100% to 200% on the insurance company in respect of the unpaid IPT (the penalty amount is discretionary). In addition, interest charges will be applied on a daily basis at 2% plus the San Marinese Central Bank’s interest rate (currently this is 2%). Thus, 4% in total. However, if payment is made within 30 calendar days of 30 April 2014 then a 25% penalty and 4% interest charge will apply.
The tax authority will calculate the penalty and interest charge on receipt of late payment. Unfortunately, there is no amnesty for late payment in respect of Q1 2014 but if an insurance company can prove to the tax authorities that it was not informed about the new IPT regime then the tax authorities may waive the penalty.
The tax authorities will allow FiscalReps and our local associates to process the IPT registration for our clients after the payment. This must be achieved as soon as possible. For clarity, if an insurer has a branch network writing business into San Marino then only one registration is required for the one legal entity and a consolidated quarterly payment and annual return is possible