Captive news

Texas becomes latest captive domicile Texas has become the latest US state to enact captive insurance legislation and become a captive domicile. Captive insurance companies will be required to pay a 0.5% premium tax, with a minimum premium tax of $7,500 and a maximum of $200,000 each year. Captive companies are also subject to maintenance taxes. The Insurance Commissioner can postpone or waive the imposition of any insurance fees or taxes for up to two years for any captive insurance company relocating to Texas. According to the legislation, a captive can only insure the operational risks of the company's affiliates and risks of a controlled unaffiliated business Tennessee introduces new protected cell captive legislation Tennessee has introduced new protected cell captive insurance legislation, which was passed unanimously by both houses of the Tennessee General Assembly. This new law lowers the capital and surplus requirement for a protected cell captive insurance company from $500,000 to $250,000, and enables a person or a business entity to sponsor a protected cell captive insurance company and eliminates the requirement for a holding company.hideIt also applies the maximum premium tax to the protected cell captive insurance company as a whole rather than to each cell, and allows risk participation by the cells on a direct basis for all of the participants. Cayman Islands to commit to OECD tax convention The Cayman Islands government says that it is prepared to commit to the Convention on Mutual Administrative Assistance in Tax Matters. The Convention is an OECD/Council of Europe multilateral agreement designed to combat tax evasion and aggressive tax avoidance, by promoting cooperation among jurisdictions for the exchange of information among relevant authorities for tax and transparency purposes. "Cayman has engaged in substantive discussions with HM Treasury on the particulars of the convention," said the Premier, the Hon. Alden McLaughlin. "We are satisfied that the extension of the convention to our Islands will be done in accordance with the UK's recognition of Cayman's fiscal autonomy, and the well-established principle that countries have the prerogative to set their own tax rates." He added, "We agree with the UK's statement that there is no point in dealing with tax evasion in one country, if the problem is simply displaced to another. With this in mind, we also agree that there should be equitable adherence, including within the G8 countries, to global tax and transparency standards. This will set the foundation for full and effective participation, by all countries, in the true spirit of these efforts." Isle of Man to join OECD tax convention The Isle of Man has welcomed the UK's focus on developing a global standard in transparency, according to Chief Minister Allan Bell. He said it was all part of the Isle of Man's long standing commitment to international responsibility and co-operation. The Chief Minister has written to Prime Minister David Cameron confirming the Island's position on tax information exchange and the identification of corporate beneficial ownership. The letter formalises the Island's commitment to joining the Multilateral Convention on Mutual Assistance in Tax Matters, which aims to include developing countries within tax information exchange networks. It added that the Isle of Man will be publishing an action plan on beneficial ownership to review existing provision. "We welcome the United Kingdom's focus on this area, and in particular the objective of achieving a global standard of tax transparency to provide a level playing field for countries across the world," he said.

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Want to read this article?

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NSM team launch $650m Ignyte platform

Donnet re-elected as Generali CEO

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