• Exemption from Premium Taxes.
• Exemption on dividends and other profit distributions made by the International Insurer and International Insurer Holding Company.
• Exemption on municipal franchise and real and personal property taxes.
• Exemption to the International Insurer and qualifying International Insurer Holding Company from withholding taxes on payments of dividends and other profit distributions made to third parties.
• Isolation of the proceeds and benefits paid by International Insurers from state and donation taxation procedures, applicable to non residents.
• Exemption from the income derived from dividends and distribution of profits, in the case of a partnership, distributions in total or partial liquidation or other income items similar thereto received by an International Insurer or an International Insurer Holding Company.
• $1.2 million tax exemption on Net Income. Exemption applicable at the individual cell level for Protected Cell Company arrangements and at the company level. Preferred 4 % tax rate on Net Income (not applicable to Holding Company), guaranteed by a decree effective over a period of 15 years, renewable for two additional periods. Tax treatment guarantee by a 15 year tax decree, renewable for two additional 15 years periods.
Upon issuing to an International Insurer its Certificate of Authority, the Commissioner shall also issue, together with the Secretary of Economic Development and Commerce, a Tax Exemption Grant which shall detail the entire tax treatment provided by the Law. As a requisite for the Grant, the Commissioner and the Secretary of Economic Development and Commerce may impose additional conditions to the International Insurer relevant to employment or economic activity.
Accordingly, the IIC is a platform for the following business opportunities, among others:
• Alternative Risk Management strategies as Captive or Associated Captives Insurers
• Insurers or Reinsurers vehicle to enter Latin America or US Markets
• Special Purpose Vehicles
• Vehicle for Integrated Insurance Plans
• Corporate reorganization using International Insurers Holding Companies
• Segregated Assets Plans to serve High Net Worth Individual market
• Securitization Programs