See first column State premium tax rates ranging from 1 to 3 varying from state

See first column state premium tax rates ranging from

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See first column. State premium tax rates ranging from 1% to 3% varying from state to state. Note: Data in the table is summarised from PricewaterhouseCoopers International Comparison of Insurance Taxation (January 2005). Some of the information may be dated, but has been included as indicative of the approaches taken by different countries. 45
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APPENDIX 2 Comparison of selected countries: policyholder taxation Country Premiums Roll-up taxed directly to policyholder Proceeds during lifetime Proceeds on death Australia Not deductible except for certain keyman insurance. Not taxable. Generally not taxable except for cash bonuses on certain policies cashed within 10 years or if the person entitled to proceeds is not the beneficial owner. Not taxable. Austria The lower of one-quarter of the premium paid and certain maximum deductions depending on family circumstances, and type of insurance. Not taxable. Generally not taxable unless paid as an annuity in certain cases or for some short-term single premium life contracts where proceeds exceed premiums. Not taxable. Belgium Tax breaks available if certain conditions are met. Not taxable. When there is no tax break on premiums, the proceeds are taxable as movable property income. Interest in annuities is taxable, and a withholding tax on interest included on certain guaranteed return life policies. For group or individual contracts when a tax break is obtained, proceeds are taxed at earned income at marginal rates and local taxes (reduced if certain conditions are met). Profit shares are tax-exempt. When there is no tax break on premiums, proceeds are tax-exempt but may be subject to inheritance tax. For group or individual contracts where a tax break was obtained, the proceeds are taxed as earned income at marginal rates plus any local taxes (reduced if certain conditions are met). Profit shares are exempt. Subject to inheritance tax. However, group insurance capital sums may be tax- exempt. 46
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Country Premiums Roll-up taxed directly to policyholder Proceeds during lifetime Proceeds on death Canada Not deductible (except for registered retirement savings plans and certain policies required as collateral). Not taxable except for savings- oriented policies where interest accrues annually to policyholder. In addition, proxy tax of 15% of the investment income accumulating in certain policy reserves is paid by the life insurer. Excess of proceeds (including policy dividend and loans) over cost basis is taxable. Not taxable except for when policy is defined as a savings vehicle. Denmark Generally tax-deductible if paid to Danish life insurance and (up to a limit) capital pension schemes. Taxed in the company at 15%. Current payments taxable. A duty of 40% is payable on lump sum payments.
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