Best Says OECD Global Minimum Tax May Be Challenging for Some Insurers

October 26, 2021

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. Read More

Global Minimum Tax Rate Would Have Limited Impact on Bermuda Market

October 22, 2021

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. Read More

Judge Grants Injunction Against IRS in Micro-Captive Reporting Case

September 24, 2021

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. Read More

IRS Chief Counsel Memorandum Confirms IRS Position Concerning Offshore Micro-Captives

September 16, 2021

Although it should come as no surprise, in CCM 202134017, the Internal Revenue Service (IRS) has made clear its position regarding micro-captives formed in a jurisdiction outside the United States. Read More

Washington State Issues Regulations Implementing New Captive Tax Law

August 24, 2021

The Office of the Insurance Commissioner for Washington State has issued draft regulations to implement legislation state lawmakers passed in April that sets new requirements for captive insurance companies licensed in other domiciles but doing business in the state of Washington. Washington State insurance regulators described the new law as a fair compromise. Read More