Insurance Premium Tax (Licensed Captive Insurers)
Single parent captive insurers may apply for a certificate of authority from the Texas Department of Insurance in order to operate in Texas. An authorized foreign or alien captive that is licensed under the laws of another jurisdiction may redomesticate to Texas upon approval by the Commissioner of Insurance. Captives licensed in Texas may only insure the operational risks of affiliates and the risks of a controlled unaffiliated business. Premium tax is due on the entire premium received by these captives without regard to the location of the risk.
Licensed captive insurers pay a premium tax rate of .5% (.005)
The minimum premium tax due is $7,500 per tax report year.
The maximum premium tax due is $200,000 per tax report year.
Yearly: March 1 following the end of the calendar year.
Semi-Annual prepayments: March 1 and August 1 of each year.