Is there a credit against franchise and excise tax for gross premiums tax paid?

Taxpayers that are self-insurers of workman’s compensation pay a gross premiums tax to the Department of Commerce and Insurance at a rate of four percent on the premium that they would have paid if they carried the full coverage insurance called for with a licensed insurance company.   

These taxpayers may take the four percent paid either as a credit against their franchise, excise tax or as a deduction in arriving at their net income (loss) subject to the excise tax.   Any credit claimed on Schedule D Line 1 must be reported as an add-back on Schedule J Line 6.   The related 0.4% surcharge may not be included in this credit.

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