Rev. Proc. 2003-78, 2003-2 C.B 1029, contains instructions for the introduction of a Section 4371 excise duty exemption on insurance premiums paid to a foreign insurer or reinsurer where the exemption is based on the provisions of an income tax agreement to which the United States is a party. The instrument for acquiring the exemption is governed by a conclusion agreement between the foreign insurance company and the Commissioner of the Internal Revenue Service (IRS). Section 4 of Rev. Proc. 2003-78 provides, in accordance with the above-mentioned previous revenue procedures, that the Internal Revenue Service “may regularly publish in the Domestic Revenue Bulletin a list of foreign insurers or reinsurers that have entered into closure agreements as part of this revenue procedure, as well as a list of foreign insurers or reinsurers whose closing agreements are denounced”. The list below of foreign companies that have concluded terminal contracts is made available in accordance with this provision. Rev. Proc.
2003-78, 2003-2 C.B 1029, contains instructions for the introduction of a Section 4371 excise duty exemption on insurance premiums paid to a foreign insurer or reinsurer where the exemption is based on the provisions of an income tax agreement to which the United States is a party. Section 3.01 of Rev. Proc. 2003-78 provides that a person who has other obligations to transfer insurance consumption tax on the basis of premiums paid to a foreign insurance or reinsurance enterprise may consider the premiums to be exempt from insurance consumption tax under an income tax agreement if the premiums are paid to an insurer or reinsurer established for contractual purposes in a country, with which the United States has entered into an excise duty exemption agreement and, prior to filing the tax return for the tax period, is aware that, for that tax period, an agreement entered into between the Internal Revenue Service and the foreign insurer or reinsurer, in accordance with the rev. 2003-78 was in force; Rev. Proc. 92-39, 1992-1 C.B 860; Rev. Proc. 87-13, 1987-1 C.B 596; or Rev. Proc. 84-82, 1984-1 C.B 779.
The processing of the request for a conclusion agreement requires that the applicant have a UN. Unless you already have a UN, please complete this form and receive a UN before submitting your application. Please attach this UN to your application. Read IRS Form SS-4 to apply for a UN. If you wish to be represented by a third party with respect to the contract of conclusion, please attach an IRS Form 2848 to your application. Please use the latest available version of IRS Form 2848. Several income tax treaties provide for an exemption for the FET, subject to certain restrictions. As a threshold, the foreign insurance company must meet the limit of the service item provided for in a contract to qualify for contractual services. In addition, most income tax agreements providing for an exemption for the FET grant only a qualified exemption. As a general rule, a qualified exemption contract provides that the FET exemption applies only to the extent that the risks covered by the premiums are not reinsured to a person who is not entitled to an exemption from the FET under an applicable income tax agreement. Even if a contract releases the FET, the foreign insurer that uses the exemption must comply with the rules of procedure, including disclosure of the position based on the contract. .