Tax obligations will arise when writing multinational policies in multiple territories in most circumstances.
These taxes may include:
- Premium taxes, stamp taxes or other parafiscal taxes
- Foreign income or corporate tax on profits
- Foreign withholding taxes (for example on (re)insurance premiums or investment income on assets held abroad)
Lloyd’s expects managing agents (MAs) and members to comply with tax laws in all territories where Lloyd’s operates.
Lloyd’s supports the market by performing some of the required tax compliance services, including filing certain tax returns and facilitating payment of premium taxes to local tax authorities. As most insurance policies can be managed centrally at Lloyd’s (specific local insurance policies are not usually required) premium tax and similar taxes are managed (in most cases) by the Lloyd’s Tax team on behalf of market participants.
Given the amount of different jurisdictions in which Lloyd’s members write business and different taxes concerned, there is a variety of legal and administrative frameworks which can apply . Some jurisdictions have Lloyd’s specific legislation and some jurisdictions have agreed arrangements with tax authorities to accommodate the unique features of the Lloyd’s market, whilst in others administrative processes and bases of filings have not been agreed with the relevant tax authorities but have been followed as a matter of custom and practice.
While the Lloyd's Tax team plays a valuable role in providing tax compliance services and support, it is ultimately the responsibility of managing agents within the Lloyd's market to ensure the correct administration and payment of taxes. The Lloyd's Tax Team provides helpful guidance (but not advice) to managing agents and other market participants to assist them in meeting their tax obligations.
Insurance Premium Taxes - calculations and getting it right
Insurance premium taxes on business written via Lloyd’s are (usually) centrally administered by the Lloyd’s Tax team. Individual managing agents do not need to manage local remittances if they ensure that all business written by their syndicates is processed at Lloyd’s in an approved and timely manner (via Xchanging Insurance Services Ltd (XIS)).
When calculating insurance premium taxes under a particular multinational policy we ask that you: