- The Tax Cuts and Jobs Act of 2017 includes several changes affecting captives
- Corporate tax rates will drop significantly in 2018
- Changes also affect offshore captives and foreign income
The Tax Cuts and Jobs Act of 2017 contains the most dramatic tax change for corporations in decades. Because the new tax law also includes provisions affecting captives and risk retention groups (RRGs), it is important to contact your tax advisor to learn how it might affect your unique situation.
“It is crucial that both life and property-casualty insurance captives review their reserves and surplus positions because the tax bill may impact them,” says Towle, Executive Vice President and Consulting Practice Leader for JLT Insurance Management (USA) LLC.
A few of the changes that should prompt a review include changes:
- Reducing the maximum federal income tax rate from 35% to 21%
- Affecting reserve positions and discounting
- Treating foreign taxes differently in a variety of areas, including the deduction in dividends and minimum tax rate for Base Erosion Anti-Abuse (BEPS) situations, as well as the foreign tax position and payments to foreign affiliates
- Altering how life and annuity companies can treat net operating losses and how life companies calculate risk-based capital (RBC).
Please contact us to learn more about these tax changes and how we can assist you with all of your risk management and risk financing efforts.
Anne Marie Towle
Tel: +1 317 922 4390
Tel: +1 802 391 3081
NOTES TO EDITORS:
About JLT Insurance Management (USA) LLC
JLTIM USA is an independent, full-service captive insurance management and captive consulting company with a multi-domicile reach. JLTIM USA is a part of Jardine Lloyd Thompson Group.
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 40 territories with more than 10,600 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
For further information about JLT, please visit our website www.jlt.com.
Disclaimer: This press release by JLT Insurance Management (USA) LLC. is intended to provide only general information based on sources we believe are reliable. JLT Insurance Management (USA) LLC. makes no representations or warranties, express or implied, as to the accuracy of any of the information herein, which is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.
Any statements concerning tax, accounting, legal or regulatory matters should be understood to be general observations based solely on our experience as captive insurance management and captive consultants. We are not tax, accounting, legal or regulatory professionals and any such information provided is not professional advice. These matters should be reviewed with your own qualified advisors in these areas