IPT rate increase on Motor Driver Accident policies expected in Italy in 2026

According to the latest draft of the 2026 Budget Law, the Italian Parliament is set to crystallise a debated recent legal interpretation conducted by the local Tax Authority Agenzia delle Entrate, whereby insurance policies covering ancillary risks of Accident to the driver of motor vehicles (“Infortunio al Conducente”) have been deemed subject to the standard 12.5% IPT rate for MTPL (Motor Third Party Liability) policies, rather than the lower 2.5% rate for Accident risks.

The debate has arisen in the last two months, following some assessments from Agenzia delle Entrate alleging IPT underpayments (i.e. 2.5% instead of 12.5%) on the mentioned policies from insurance companies, an outcome that ANIA – the Association of Italian Insurers – maintains is conflicting with an interpretation released by the Italian Ministry of Finance in 1983.

In recent audits, it appears that Agenzia delle Entrate have been requesting the 12.5% on such policies retroactively up to the Statute of Limitation of 10 years, plus penalties and interests.

From a legal standpoint, in our view the provision drafted by the Parliament – directly proposed by a member of the ruling Party – is extremely important in ensuring that the current interpretation from the Tax Authority could pass potential appeals before Courts, for appearing highly questionable based on the current Legislation.

The new rate of 12.5% is expected to be applied on insurance premiums collected from the 1st of January 2026.