The world’s main reinsurance markets typically provide its services on a cross-border basis for Latin American based cedants, considering that the reinsuring capacity within the region is limited, in comparison to the insurance companies’ demand.
Consequently, these cross-border transactions imply taxation difficulties for the local governments of the country where the cedants are domiciled, as the foreign reinsurers collect the premiums whilst located in other jurisdictions.
Therefore, most of the Latin American tax authorities have adopted withholding tax rates for outbound reinsurance premiums payable by local cedants to foreign reinsurers.
Herein, readers will find a comparison of the withholding tax rates applicable in the region.
Download the report “2020: Taxation on reinsurance premiums in Latin America”
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Updated: January 2021