The Washington State Office of the Insurance Commissioner has given final approval to regulations issued in August to implement legislation that state lawmakers passed in April imposing new fees on captive insurance companies licensed in other domiciles but doing business in the state of Washington.
On Tuesday, Washington State voters rejected a recent law that imposes premium taxes on captive insurance companies licensed in other states but doing business in Washington State. However, the law will remain in effect unless state legislators vote to repeal the measure.
An anticipated global minimum tax on certain multinational companies creates the potential for double taxation on some insurers, according to A.M. Best. While short-term insurance coverages might fit into the tax scheme, A.M Best says the application of that minimum tax could prove challenging for insurers with longer-duration coverages.
An anticipated 15 percent global minimum tax rate would marginally reduce Bermuda's advantageous tax status for the (re)insurance industry, according to Fitch Ratings. The 15 percent global minimum tax rate would be enacted with the expected passage of a recent multilateral agreement to establish the tax.
A federal judge has granted a preliminary injunction barring the US Internal Revenue Service (IRS) from enforcing its micro-captive reporting requirement on CIC Services. The September 21, 2021, ruling comes after the US Supreme Court earlier this year overturned a previous federal district court ruling rejecting CIC's injunction motion.