There are two different types of fees for Delaware captive insurance companies. The first is a one-time application fee of $200 and an application processing fee of $3,000. Both of these fees are due upon the submission of the application to the Delaware Commissioner of Insurance. The second type is an annual license renewal fee of $300 which is due annually on March 1st along with the filing of the annual Premium Tax and Fees Report.
A captive insurance company does not pay income taxes in the State of Delaware. They do, however, pay premium taxes, which are due annually on March 1st along with the filing of the Annual Premium Tax and Fees Report. Premium taxes are calculated on gross written premiums during the calendar year less any dividends returned to policyholders. The direct premium tax is based on 2/10 of 1% and the assumed reinsurance premium tax is based on 1/10 of 1% of the total taxable premiums. The minimum annual premium tax is $5,000 and the maximum is $200,000 per captive insurance company.
In addition to the taxes and fees noted here, all Delaware corporations must file an annual Franchise Tax Report. For captive insurance companies, there is no franchise tax due, but there is a $50 filing fee for the filing of the annual Franchise Tax Report.
For more information concerning the calculation of the premium tax or regarding the filing of any of the reports noted here, you can visit the State of Delaware’s Captive Insurance home page or you can contact Jan Snow at jsnow@coverrossiter.com.
Cover & Rossiter is one of the area's oldest and most respected certified public accounting and advisory firms. Focused on being the best rather than the biggest, we assembled an outstanding team with a wide range of skills. It is our goal to provide our clients with innovative services designed to maximize profitability and minimize tax burden. Our advice is current… our client focus timeless.
Showing posts with label Captive Insurance. Show all posts
Showing posts with label Captive Insurance. Show all posts
Monday, February 27, 2012
Tuesday, February 7, 2012
Important Deadlines of 2012 for Captive Insurance Companies in Delaware
So, you just formed a new captive in Delaware. Now what?
If you are like the numerous other companies who set up a new captive in 2011 in the State of Delaware, you are likely not aware of all of the filing requirements for your captive insurance company.
The first deadline you need to be concerned with is the Delaware Annual Statement, which is a form required by all State Insurance Departments as regulated by the NAIC (National Association of Insurance Commissioners). This form is the equivalent of an insurance company financial statement with disclosures. It is due March 1, 2012 for all calendar year entities.
Premium taxes and license fees are also due on March 1, 2012. There is only one form that needs to be completed to report and pay both of these fees (Premium Tax and Fees Report).
The Department of Insurance also requires each captive to obtain an outside audit opinion on the financial statements and an outside actuarial opinion on the reserves. Both of these reports are due on or before June 30, 2012 for a calendar year entity.
For more information including access to the forms, you can visit the State of Delaware’s Captive Insurance home page.
For specific questions about the forms or the requirements, please contact Joanne Shaver at JShaver@coverrossiter.com. Joanne oversees the captive insurance services group at Cover & Rossiter. Cover & Rossiter is a CPA firm providing audit and tax services to captive insurance companies operating in Delaware, Kentucky, Utah and the District of Columbia.
If you are like the numerous other companies who set up a new captive in 2011 in the State of Delaware, you are likely not aware of all of the filing requirements for your captive insurance company.
The first deadline you need to be concerned with is the Delaware Annual Statement, which is a form required by all State Insurance Departments as regulated by the NAIC (National Association of Insurance Commissioners). This form is the equivalent of an insurance company financial statement with disclosures. It is due March 1, 2012 for all calendar year entities.
Premium taxes and license fees are also due on March 1, 2012. There is only one form that needs to be completed to report and pay both of these fees (Premium Tax and Fees Report).
The Department of Insurance also requires each captive to obtain an outside audit opinion on the financial statements and an outside actuarial opinion on the reserves. Both of these reports are due on or before June 30, 2012 for a calendar year entity.
For more information including access to the forms, you can visit the State of Delaware’s Captive Insurance home page.
For specific questions about the forms or the requirements, please contact Joanne Shaver at JShaver@coverrossiter.com. Joanne oversees the captive insurance services group at Cover & Rossiter. Cover & Rossiter is a CPA firm providing audit and tax services to captive insurance companies operating in Delaware, Kentucky, Utah and the District of Columbia.
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