Change to Quarterly Estimated Payments for the Insurance Premium Tax

DOMESTIC/FOREIGN INSURERS BULLETIN NO. 31 NOTICE OF CHANGE TO QUARTERLY ESTIMATED PAYMENTS FOR THE INSURANCE PREMIUM TAX Beginning in calendar year 2009, and henceforth, the estimated payments for the insurance premium tax shall be changed from four equal 25% payments in April, June, September and December to 50% in April, 20% in June, 20% in September, and 10% in December. This change is the result of a legislative change to 18 Del. C. § 702 (d), enacted June 30, 2008. GENERAL INFORMATION The Act to amend Chapter 7, Title 18 of the Delaware Code relating to taxes on insurance premiums shall be effective for tax years beginning after December 31, 2008. The change affects all companies subject to insurance tax in the State of Delaware. The quarterly payments shall be based on estimated tax liability for the current year for those taxes imposed by § 702 and §707 (2% Premium Tax, 1.75% and .25% respectively), § 703 (Domestic Insurers Privilege Tax), § 704 (2% Worker’s Compensation and Employers Liability Premium Tax), and § 6914 (Captive Insurer Premium Tax). The quarterly payments shall be paid as follows: 50% of the estimated tax liability for the current year on or before April 15 of the current year, and the balance of the estimated tax shall be paid in installments of 20% on June 15 of the current year; 20% on September 15 of the current year; 10% on December 15 of the current year; and the remaining balance to be paid on March 1 of the following year. The quarterly tax report form, Working Form T-9, will be updated to reflect this change beginning with the 2009 tax forms, and will be available from the Department’s website www.delawareinsurance.gov in December 2008. It is each company’s responsibility to obtain the correct, updated tax forms for submission during calendar year 2009 and following years. Date: July 14, 2008 Matthew Denn Insurance Commissioner