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Tag Archives: Tax

Posted in Regulatory and legislative updates, UK

UK: HMRC introduces Profits Diversion Compliance Facility

Our tax team recently published an article about the introduction of a new Profits Division Compliance Facility by HM Revenue & Customs.  This is an opportunity for multinationals, including insurers, active in the UK to initiate a discussion with HMRC on how they allocate their profits across jurisdictions for tax purposes.  It is particularly relevant

Posted in Asia, European Union, France, Germany, Hungary, Italy, Latin America, Poland, Regulatory and legislative updates, Russia, Spain, The Netherlands, UK, USA

Proposal by Obama Administration Seeks to Limit U.S. Federal Income Tax Deductions for Reinsurance Premiums Paid by U.S. Cedents to Affiliated Non-U.S. Reinsurers

What is Being Proposed In an effort to reduce perceived U.S. tax advantages for certain multinational insurance and reinsurance groups with U.S. operations, the Obama administration in its 2016 Fiscal Year Budget Revenue Proposals seeks new legislation that would deny a U.S. cedent a federal income tax deduction for premiums paid to an affiliated non-U.S.

Posted in Case reports, USA

U.S. Court of Appeals Affirms Decision by Lower Court That Retrocessions with Underlying U.S. Risks Between Two Non-U.S. Reinsurers Are Not Subject to U.S. Federal Excise Tax

The U.S. District Court of Appeals for the District of Columbia Circuit recently affirmed the U.S. District Court’s decision in Validus Reinsurance, Ltd. v. United States of America, that the U.S. federal excise tax (“FET”), sometimes referred to as the “cascading” FET, does not apply to retrocessions between two non-U.S. reinsurers even if the underlying

Posted in Regulatory and legislative updates, USA

US: IRS Proposes New PFIC Regulations Impacting Non-US Insurance Companies

The US Internal Revenue Service (“IRS”) recently proposed new rules potentially affecting the classification of non-US insurance companies (including reinsurers and certain captives) as PFICs. In particular, these proposed rules raise three key issues for non-US insurance companies that hope to avoid PFIC status (and the application of onerous PFIC tax consequences to shareholders that

Posted in Market developments, USA

US: The Allocation of FATCA Withholding Risk in Cross-Border Reinsurance Agreements

While FATCA withholding commenced July 1, 2014, issues remain for parties negotiating cross-border reinsurance agreements.  Principally, the issue is how FATCA withholding risk should be allocated among the parties to the transaction and how risk allocation should be reflected in the transaction documents.  Jason Kaplan and Christine Lane, of Hogan Lovells’ US tax practice, recently