3 February 2015

The MOT Contribution (Contribution Véhicules Terrestres à Moteur) due on motor insurance at 15% shall be abolished in respect of contracts issued on or after the 1 January 2016 instead of 1 January 2015.  According to Article 1001 of the French Tax Code issued early in January of this year, it was expected that the MOT Contribution would be abolished on 1 January 2015.  However, this change was not in line with the French Social Security Code (the legislation that governs the MOT Contribution), which stated that the abolition would occur in 2016.   Article 1001 of the French Tax Code has since been amended to exclude the two anticipated IPT rates of 15% and 33%.