Tax Type
Corporation Income Tax
Description
Insurance companies; Exemptions and exclusions from corporate taxation
Topic
Exemptions
Returns/Payments/Records
Date Issued
03-12-1984
March 12, 1984
Dear *****************
Reference is made to your March 1, 1984 letter and our discussion of § 58.1-401 of House Bill 195 Amendment in Nature of a Substitute. § 58.1-401 sets out the exemptions and exclusions from corporate taxation.
Since insurance companies are subject to a license tax on gross premiums and excluded from corporate income taxation, there is no requirement that corporate income tax returns be filed with the Department of Taxation; however, should an insurance company set up a business separate from its insurance operation, such operation may be subject to the corporate income tax. Thus the language "to the extent such company" only serves to clarify that an insurance company would be subject to corporate taxation on income earned in a business separate from its insurance business.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner