Sunday, July 27, 2014

International Insurer and Reinsurer (Act 98)

Act 98 which is known as the International Insurer and Reinsurer Act (IIRA) enables the creation of international insurers, reinsurers and holding companies. These companies are eligible for attractive tax treatment. The intent of the act was to facilitate the growth of export insurance and reinsurance sectors by establishing a level playing field for Puerto Rico insurers to compete with Bermuda, Cayman Islands etc. Only insurer/reinsurers or another international insurer holding companies that are approved by the Commissioner of Insurance are eligible for this attractive tax treatment. Generally, the tax treatment is 0% on income tax dividends, distributions from liquidation, as well as other taxes. In addition, revenues for non-residents may also be exempt. 

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


The information on this website is general information and is for educational use only and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

To comply with requirements imposed by the Department of the 
Treasury, we inform you that any U.S. tax advice contained in this post (including any 
attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any
taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) 
supporting the promotion or marketing of any transactions or matters addressed herein.

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