U.S. Income Taxation of International Insurance Activities (Portfolio 931)
This Portfolio reviews the U.S. income taxation of U.S. persons engaged in insurance activities outside of the United States and of foreign persons engaged in insurance activities within the United States.
Tax Portfolio, U.S. income Taxation of International Insurance Activities, Part I provides a general review of the requirements of when an arrangement is treated as insurance for U.S. income tax purposes and a review of the taxation of U.S. insurance companies.
Part II addresses the U.S. income taxation of foreign-owned U.S. insurance companies and branches. This part principally discusses the taxation of insurance activities rising to the level of a U.S. trade or business that are subject to U.S. income tax under §§ 882, 842, and 884. Further, this part addresses the U.S. excise taxation of U.S. insurance risks and the unique regime affecting Lloyd’s syndicates insuring U.S. risks.
Part III addresses the U.S. income taxation of U.S.-owned foreign insurance companies and branches. This part discusses the several existing and past anti-deferral regimes that could potentially apply to a U.S.-owned foreign corporation. This part also discusses the different rules applicable to U.S.-owned foreign insurance branches.
Part IV addresses generally provisions affecting both foreign-owned U.S. companies and branches and U.S.-owned foreign companies and branches. This part discusses certain unique U.S. withholding tax issues applicable to payments made to or by insurance companies, some unique aspects of the entity classification rules applicable to insurance companies, and other miscellaneous items.
Table of Contents
II. Foreign-Owned U.S. Insurance Activities
III. U.S.-Owned International Insurance Activities
IV. U.S. International Tax Issues Affecting Both Foreign-Owned and U.S.-Owned International Insurance Activities
Ernst & Young LLP