How Self-Procurement Tax Can Influence Captive Domicile Decisions

Self-procurement tax can have a meaningful impact on the economics and compliance obligations of a captive insurance program, yet it is often overlooked during formation and expansion discussions. In this episode of The Edge of Risk Podcast by IRMI, Allan Autry, Certified Public Accountant and partner at Johnson Lambert, explains when self-procurement tax applies, how home-state rules determine tax obligations, and why organizations operating across multiple jurisdictions need a clear compliance strategy.

The discussion also explores common misconceptions about self-procurement tax, how it interacts with premium taxes, and the potential role of fronting arrangements in managing obligations. Allan shares practical guidance on incorporating self-procurement tax into feasibility studies, evaluating domicile options, and preparing for increased enforcement activity from state regulators.

Hear the full conversation on Captive.com to learn how self-procurement tax applies within captive insurance programs, including compliance requirements, domicile considerations, home-state rules, and strategies for managing potential tax obligations.