| Common Questions |
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| Insurance Companies |
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- When is our return due?
Corporation Excise Tax Returns are due on or before April 15. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Do not file your return before the end of the year.
- What form do we use?
Form 20-INS Oregon Insurance Excise Tax Return.
- Do we file a return with the Department of Revenue or the Department of Consumer and Business Services (DCBS) Insurance Division?
File the excise tax return with the Oregon Department of Revenue. File returns to report the retaliatory tax and transition tax with the Insurance Division of DCBS. Those returns are due on or before April 1. Tax year 2001 was the last year for which transition tax was due.
- Can we make our prepayments of all the tax to Revenue? Insurance Division?
No. Each agency collects separate taxes. You pay excise tax to Revenue. The Insurance Division collects the retaliatory tax. Monies cannot be transferred between the agencies.
- When are our prepayments due?
Revenue has four payments and Insurance Division has three, which are due as follows:
| Excise Tax
(Revenue)
| Retaliatory Tax
(Insurance Div.)
| April 15
| 1st
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| June 16
| 2nd
| 1st
| Sept. 15
| 3rd
| 2nd
| Dec. 15
| 4th
| 3rd
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- Are any insurance companies exempt from the excise tax?
Surplus lines insurance companies, fraternal benefits societies (exempt under IRC 501(c)(8)), and other insurance companies exempt for federal tax purposes are exempt from the Oregon excise tax. Profit from writing wet marine and transportation insurance is exempt and is subtracted from the taxable income of the insurer.
- How are Title Insurance companies treated under the law?
Title insurance companies file the regular Form 20 and use the standard apportionment formula.
- How do I get a Business Identification Number (BIN)?
You may have already been assigned a BIN if payroll taxes, workers' compensation, or unemployment tax payments have been made to Oregon. If you do not have a BIN, leave the BIN space blank on your return; we will assign a number.
- Can we file a consolidated return?
Yes
- Domestic insurance companies not controlled by foreign insurers are subject to the consolidated filing provisions.
- An inter-insurance, or reciprocal exchange insurer, may file consilidated returns with its Attorney-in-fact, as provided in ORS 317.710(7).
No.
- Domestic insurance companies controlled by foreign insurers must file separate returns.
- Foreign insurance companies must file separate returns.
- Should the federal return be attached to the Oregon return?
No. The Form 20-INS is not based on the federal return.
- What is the 'fire insurance gross premiums tax credit' for? Is there a carryover to other years for credit not used this year?
The credit is equal to the amount of tax paid to the Insurance Division based on fire insurance premiums for the tax year. For example, the taxpayer would enter a credit on Form 20-INS for the amount of tax shown on the taxpayer's State Fire Marshal report for the same year. See ORS 317.122 and ORS 731.820.
There is no carryover.
- Do the amounts entered in the wage and commission factor come from the federal 1120-L or the annual statement?
Enter the amount from the annual statement.
- Is the guaranty association assessment offset available starting in the year paid or in the year after it is paid?
The offset is available starting in the year after it is paid per ORS 734.575 and 734.835.
- Are reinsurance premiums included in the insurance sales factor?
Generally ORS 317.660 provides that the insurance sales factor does not include reinsurance accepted, and there is no deduction of reinsurance ceded. If the exclusion of reinsurance premiums results in an apportionment formula not fairly representing the extent of an insurance company's activity in Oregon, the taxpayer may petition for the inclusion of the reinsurance premiums in the sales factor.
- Can insurance companies take a dividend deduction on Form 20-INS?
No. There is no provision in ORS 317.655 for a dividend deduction in computing Oregon taxable income for insurers.
- Questions regarding the excise tax:
Contact the Department of Revenue 503-378-4988.
- Questions regarding the retaliatory tax and transition tax:
Contact the Insurance Division 503-947-7218.
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