Maintaining a Global Database Karen Jenner Client Director – Captive Tax Practice, FiscalReps

Key Considerations Focus on Global Compliance Maintaining a Database Regulatory Issues Research into territories outside the EU Focus on: o Australia o Chile o Peru o Colombia

Focus on Global Compliance Airmic insight risk manager Continued EU expansion Emerging markets

Maintaining a Database Resourcing Regulatory piece Research Translations Local requirements Live feed

Research into New Jurisdictions Regulatory advice: o Ability to write direct commercial insurance without being licensed by the regulatory authorities within that jurisdiction o If so, any specific procedures to be adopted or specific restrictions on classes of business underwritten o Any different rules that may apply where the insured seeks insurance from a captive insurer o Any penalties that can be imposed on either insurer or insured where insurance is written by an unlicensed insurer Premium taxes and parafiscal charges applicable Requirements and process for settlement of premium taxes and parafiscal charges

Australia – Regulatory Advice Section 93 (1) Insurance Act 1973 Insurance Amendment Regulations Australian Prudential Regulatory Authority (APRA) Section 3(5)-(7) Insurance Act 1973 for UFIs Section 17 Life Insurance Action 1995 Potential APRA Penalty of up to $51,000 per policy awarded to Insurer

Australia – Premium Tax Regime Federal income tax of 3% is deducted from premiums paid to non admitted overseas insurers Varying state taxes Parafiscal charges to cover fire and emergency services in some states

Australia – Local Requirements Filing and settlement can made by local insured GST and state taxes are payable on a cash received basis

Peru – Regulatory Advice General Banking and insurance Law No o Article 11 o Article 10 Obligatory Insurances Article 246 Penal Code – 3-6 years imprisonment Superintendence Resolution No SBS, Annex 1.III 1 where insurance activities not expressly authorised sanction in form of economic fine of up to USD 255,000

Peru – Premium Tax Regime Income tax of 2.1% withheld and paid to the authorities by the local insured IGV sales tax of 18% payable by the insured assessed on the premium

Peru – Local Requirements Filing and settlement can be made by local insured Tax point triggered upon premium receipt

Chile – Regulatory Advice New Insurance Agreement Act Nr. 20,667 modified a complete chapter of Chilean Commercial Code in 2013 Chilean entities may contract insurance foreign insurers, provided: (i) the insurance is contracted abroad; and (ii) the insurance is not a mandatory insurance/does not qualify as social security/pension insurance Monitoring scope and authorities of the SVS Penalty - imprisonment from 61 to 540 days or SVS office closure

Chile – Premium Tax Regime 22% withholding tax (depending on the type of insurance cover)

Chile – Local Requirements Filing and settlement can be made by local insured Tax point triggered upon premium receipt Annual filing

Colombia – Regulatory Advice RAIMAT “Permitted International Insurances “ - international shipping; international commercial aviation; outer space launches; outer space transportation The insurance agreement is entered into abroad ‘Excluded Insurances’

Colombia – Premium Tax Regime 16% IVA Sales Tax

Colombia – Local Requirements

Questions