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Insurance Premiums License Tax - Frequently Asked Questions

Responsibilities of the Administering Agencies

What are the responsibilities of the Virginia Department of Taxation beginning January 1, 2013?

The Department of Taxation (the Department) is responsible for administering the Insurance Premiums License Tax (PLT) beginning January 1, 2013, for Taxable Year 2013 and thereafter.  Administrative responsibilities include the processing of tax reports, the handling of related payments and billings, providing customer services, and performing collections and auditing functions as related specifically to PLT.  In addition, the Department will administer the retaliatory cost assessment as well as oversee the retaliatory costs tax credit. For more detailed information about filing and payment, visit the Insurance Premiums License Tax home page.

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What are the responsibilities of the State Corporation Commission Bureau of Insurance  beginning January 1, 2013?

The Bureau of Insurance (BOI) is responsible for issuing licenses for insurance companies and surplus lines brokers, conducting regulatory audit examinations and administering the annual maintenance assessment, the Fire Programs Fund, the Dam Safety Program, the Flood Prevention and Protective Assistance Fund and the programs to reduce losses from vehicle thefts and insurance fraud.  In addition, BOI is responsible for processing Insurance Premiums License Tax reports, payments and billings, and providing customer service support for returns, payments and bills for Taxable Year 2012 and prior years.  For more information regarding annual report filings for Taxable Year 2012, visit the Bureau of Insurance website.

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Insurance Companies

Are insurance companies that commence business in Virginia required to pay an initial declaration of estimated insurance premium license tax?

Yes, insurance companies commencing business in Virginia must pay their initial declaration of estimated insurance premiums license tax for the calendar year to the Department of Taxation before the Bureau of Insurance issues the license.  To calculate the tax, use an estimate of direct gross premium income expected to be derived from such business conducted in Virginia from the commencement date through December 31.  Insurance companies can register their business and pay the initial declaration of insurance premiums license tax online, or make a paper submission using the  Business Registration Application Form R-1 and the Declaration of Estimated Premiums License Tax Form R-1A.  The Form R-1A must be completed, even if the company’s direct gross premium income amount is zero dollars.

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When will insurance companies begin to file their reports with the Department of Taxation?

Filing with the Virginia Department of Taxation will begin with reports for the Taxable Year 2013.  This includes the Insurance Company Annual Premiums License Tax Return, which is due to be filed by March 1, 2014.  Quarterly estimated payments for 2013, which are due on April 15, June 15, September 15 and December 15, 2013, should also be filed with the Department of Taxation.  NOTE:  Beginning with Taxable Year 2013, the Retaliatory Tax Report will be replaced with a schedule that will be included in the filing of the Annual Premiums License Tax Return.

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Can insurance companies make their payments electronically with the Department of Taxation beginning with their estimated payments for 2013?

Yes. The Department provides two secure online options for submitting estimated payments electronically through our eForms and Business iFile applications.   Payment by EFT Credit is available as well.  For more information, or to make a payment electronically, visit the Insurance Premiums License Tax home page.  To submit a paper check, you may download Form 800ES, Insurance Premiums License Tax Estimated Payments.

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What is the best way to stay informed about legislative changes, filing reminders, and other updates?

To receive the latest tax updates, sign up for our free e-Alerts service.  Subscribers periodically receive e-mail notifications about topics such as legislative changes and, filing reminders.  To subscribe, visit e-Alerts, select the topics of interest, and enter your email address.

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Surplus Lines Brokers

When will surplus lines brokers begin to file their reports with the Department of Taxation?

Filing with the Virginia Department of Taxation will begin with reports for the Taxable Year 2013.  This includes the Surplus Lines Broker Quarterly Reports, due on April 30, July, 30, and October 30, 2013 and January 30, 2014, as well as the 2013 Surplus Lines Broker Annual Reconciliation Tax Report, which is due on March 1, 2014.

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Can surplus lines brokers file their quarterly tax reports and make payments electronically with the Department of Taxation beginning with their 2013 quarterly reports?

Yes, surplus lines brokers can file and pay electronically.  The Department provides a secure online option for surplus lines brokers to submit quarterly tax reports and make payments electronically through our eForms application.  For more information, visit the Insurance Premiums License Tax home page.  To file and pay with a paper return, download Form 801, Surplus Lines Brokers Quarterly Tax Reports.

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What is the best way to stay informed about legislative changes, filing reminders, and other updates?

To receive the latest tax updates, sign up for our free e-Alerts service.  Subscribers periodically receive e-mail notifications about topics such as legislative changes and, filing reminders.  To subscribe, visit e-Alerts, select the topics of interest, and enter your email address.

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Last Updated 7/29/2014 11:15

 

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