Exemption from Section 4371 Excise Tax


Rev. Proc. 2003-78, 2003-2 C.B. 1029, provides instructions for establishing an exemption from the section 4371 excise tax on insurance premiums paid to a foreign insurer or reinsurer when the exemption is based on the provisions of an income tax treaty to which the United States is a party. Section 3.01 of Rev. Proc. 2003-78 provides that a person otherwise required to remit the insurance excise tax on account of premiums paid to a foreign insurance or reinsurance company may consider the premiums exempt from the insurance excise tax under an income tax treaty if the premiums are paid to an insurer or reinsurer that is a resident for treaty purposes of a country with which the United States has a treaty containing an excise tax exemption and, prior to filing the return for the taxable period, such person has knowledge that there was in effect for such taxable period a closing agreement between the Internal Revenue Service and the foreign insurer or reinsurer under Rev. Proc. 2003-78; Rev. Proc. 92-39, 1992-1 C.B. 860; Rev. Proc. 87-13, 1987-1 C.B. 596; or Rev. Proc. 84-82, 1984-1 C.B. 779.

Rev. Proc. 2015-46, 2015-39 I.R.B. 414, amends Rev. Proc. 2003-78 to update the mailing address and contact number, formalize certain requirements, and provide corresponding changes to the form closing agreements attached as Appendices A and B to Rev. Proc. 2003-78.

Section 4 of Rev. Proc. 2003-78, consistent with the prior revenue procedures listed above, provides that the Internal Revenue Service “may periodically publish in the Internal Revenue Bulletin a list of foreign insurers or reinsurers that have entered into closing agreements under this revenue procedure and also a list of foreign insurers or reinsurers whose closing agreements are terminated.” A list of foreign corporations that have entered into closing agreements is available in accordance with this provision.

The list will be updated to reflect changes in the status of a company and other identifying information. However, because the published lists cannot be relied upon as conclusive that a particular company has a valid closing agreement in effect, interested parties should contact the company directly should they wish to verify the information posted on this website.

Foreign insurers or reinsurers who wish to enter into a closing agreement under the above revenue procedures, please refer to the Federal Excise Tax Exemption Program page.

Foreign insurers or reinsurers with effective closing agreements who wish to be added to the list should complete the consent form PDF and send it via email to Sammi Cen at LBI.FET.Exemption@irs.gov .

Companies with Closing Agreements (in alphabetical order)


* Under these treaties, the exemption generally does not apply if premiums are paid to an office outside the company's country of residence.

Caution: Section 6139 of the Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647) provides that no provisions of the U.S.-Barbados or the U.S.-Bermuda income tax treaties (if either or both treaties are in force on December 31, 1989) shall prevent application of the excise tax on premiums allocable to insurance coverage for periods after December 31, 1989.