Tax aspects of insurance entities

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 (including transfer pricing) 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 an increasing complexity of national, European regulations and international legislations 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.

By the end of this training, the participants will be able:

• 1) to have a good understanding of the current Luxembourg taxation of the insurance industry including the aspects linked to the insurance entity itself, the distribution and investment activity in order to handle tax matters linked to the insurance industry methodically;
• 2) identify the upcoming tax challenges the insurance industry would face;
• 3) develop a critical mindset with respect to tax aspects linked to the insurance industry.

The course will focus on the following:

• Taxation of the insurance entity itself (i.e. corporate tax, VAT and TP aspects)
• Taxation of the distribution activity (e.g. development of the digital distribution on related tax impact)
• Taxation of the investments activity
• Impact of the EU Pillar 2 on insurance entities
• Expectations regarding tax regulations/legislations that may impact the insurance industry

This training is coordinated by David Schaefer and Géraud de Borman, Partners in the PwC Tax department.

David is advising clients in the Financial Services Industry to meet their VAT compliance obligations and is providing assistance enabling clients to meet their business objectives.

Géraud is specialised in corporate taxation and advises financial industry companies and multinational companies on recurrent questions or special operations (merger, IPO,..). He is also advising various insurance and reinsurance captives.