Reinsurance

Reinsurance is classified as a Qualifying Activity under the financial services category. Forensic scrutiny focuses on the 'Regulatory Oversight' clause; if the entity loses its regulatory license or operates outside the scope of its financial permit, the income is reclassified as taxable at 9%. Additionally, B2C reinsurance (though rare) would be treated as Excluded Income.

Audit Red Flag

Reinsurance commissions or premiums booked in a Free Zone entity where the Core Income-Generating Activities (CIGA), specifically risk underwriting and capital allocation, are performed by mainland employees or third-party offshore managers.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.