Navigating taxes in Insurance Industry

Introduction

A good understanding of the tax rules is key for any business and is particularly important in the insurance industry. Ensuring having the right knowledge both (i) in direct taxes and (ii) in VAT can help to anticipate and manage tax risks upfront and may open the door to a reduction of processing costs and other charges linked to administrative demands.

There is increasing complexity of national, European regulations and international legislation such as the OECD BEPS plan Addressing Base Erosion and Profit Shifting (“BEPS”), along with a growing volume of court decisions on the subject. VAT rules are not easier to deal with: scope of exemptions, mitigation strategies, reporting requirements are high on the agenda of tax directors and CFOs. PwC's Academy is happy to offer you an innovative training session which gets you up to speed on the main tax considerations and issues for the insurance industry in Luxembourg.

This training includes future expected changes in the legislation as applicable as well as the regulatory changes that could trigger unexpected tax consequences when business models and fee structures are revisited.

Objectives

At the end of the session, participants will be able to:

• explain the main tax consideration / issued for the insurance industry in Luxembourg;
• apply the right method and rules for determining the proper tax treatment of the typical insurance transactions, including identifying potential tax exposures and opportunities to mitigate the final tax cost where possible
• explain the tax obligations and liabilities for the insurance companies in Luxembourg, taking into account the most recent developments
• develop extensive knowledge of each OECD BEPS actions that will impact the insurance industry in the near future.

The course will focus on both direct taxes (corporate income tax, municipal business tax, withholding tax, net wealth tax) and value added tax:

• Introduction to insurance industry
• Overview of the Luxembourg tax regime
• Overview of the BEPS actions impacting the Insurance industry and of the measures already effectively implemented in EU Directives
• Tax and especially VAT treatment of the common transactions in the insurance sector
• Principles of VAT efficient sourcing
• Recent VAT developments notably regarding the asset management services and the independent group of persons.