Insuring risks located in Indiana does not equate to "doing business" in Indiana for purposes of being subject to the Indiana premiums tax in lieu of the corporate income tax

myStateTaxOffice

Indiana imposes both a corporate income tax and an insurance premiums tax. Under the premiums tax, foreign (not organized in Indiana) insurance companies that are "doing business" in Indiana are subject to the premiums tax in lieu of the corporate income tax. 

Foreign reinsurance companies that engaged in transactions outside of Indiana were not subject to the premiums tax despite the fact that the underlying risks were located in the state. [Indiana Dept. of Revenue v. United Parcel Service, Inc., Ind. Supreme Court, Dkt. No. 49S10-11070TA-417 (6/21/12)]



Return to Tax research and insights
State and Local Tax