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Pennsylvania Department of Revenue

Instructions for RCT-122

Gross Premiums Tax - Premiums Paid to Unauthorized Foreign Insurance Companies

RCT-122 I (04-16)

Department, to 180 Sheree Blvd.,

Imposition, Base and Rate

GENERAL INFORMATION

Ste. 3100, Exton, PA 19341.

Gross premiums tax for premiums paid

•

to unauthorized foreign or alien insur-

REMINDER

One extension coupon, REV-426,

ance companies is imposed on the

THE RCT-122 REPORT CANNOT

will be used for all specialty taxes.

insured rather than on the insurance

INCLUDE MORE THAN ONE

The coupon and the tax report will

carrier. Anyone who enters into a

MONTH

•

no longer be mailed. These forms

contract of insurance or reinsurance with

are available as fill-in documents on

All payments of $1,000 or more

a foreign or alien insurer not licensed to

the

department’s

website

must be made electronically or by

do business in Pennsylvania is subject to

The REV-

certified or cashier’s check remitted

the tax on insurance premiums. The tax

426 extension coupon can be filed

in person or by express mail

is imposed at 2 percent of life insurance

electronically through e-TIDES at

courier.

•

and annuity gross premiums and 3

How-

Use only whole dollars when

percent on premiums for all other types

ever, electronic filing of the tax

preparing tax reports.

•

of insurance. The tax must be remitted

report is not available. The report

should be completed using the

to the Pennsylvania Department of Rev-

Taxpayers may request a 60-day

computer-based fill-in form, printed

enue when the insured enters into the

extension to file this report by filing

and submitted by mail to the

insurance contract and makes a periodic

REV-426.

department. The form can be saved

payment. Insurance companies author-

NOTE: The automatic PA ex-

electronically for your records.

ized to do business in Pennsylvania are

•

tension provided by Act 52 of

subject to a tax on gross premiums of

The tax liability reported on RCT-

2013 to those with valid federal

reinsurance when the reinsurance is with

122 cannot be less than zero;

extensions DOES NOT apply to this

companies not authorized to do business

instead the taxpayer must file a

tax.

•

in Pennsylvania. For more information,

petition for refund.

The penalty imposed for failure to

see Act of July 6, 1917, P.L. 723, as

Annual Report Checklist: Make sure

file timely reports is now a minimum

amended by the Act of Jan. 24, 1966.

you include the following to file your

of $500, regardless of the deter-

Location of Risk

annual report properly and completely:

mined tax liability, plus an additional

•

If the policy involves risk located in

1 percent of any determined tax

Negative amounts must be written

multiple states including Pennsylvania,

liability over $25,000.

•

using a minus sign preceding the

the taxable premium shall be levied as

number. Do not use parentheses.

Use ONLY the most current, non-

•

follows:

year-specific tax form and instruc-

Complete RCT-122, Gross Premiums

If Pennsylvania is the home state of the

tions for filing ALL tax years. If an

Tax Report, for premiums paid to

insured, the gross premium shall be

amended report must be filed,

unauthorized foreign insurance com-

taxpayers must use the most

taxable to Pennsylvania. For more infor-

panies, associations, exchanges, etc.

•

current, non-year-specific tax

mation see 40 P.S. § 991.1602, 40 P.S.

Complete Schedule A and Schedule

form, completing all sections of

§ 991.1621 and 40 P.S. § 991.1622.

B (Include any cancelled policies)

the form. REV-1175, Schedule

•

Revenue ID, Federal Employer

AR (explanation for amending),

Corporate officer’s/insured’s signa-

Identification Number (FEIN),

must be included when filing an

ture on Page 1 and preparer’s

Parent Corporation FEIN, Name

amended report.

•

signature and PTIN on Page 2, if

and Address

applicable

RCT-122 is available as a fill-in form

•

The Revenue ID number, FEIN, name

on the department’s website at

and complete mailing address must be

A signed copy of the RCT-122 tax

•

provided. If the taxpayer is a subsidiary

report must be sent to the Pennsyl-

of a corporation, the parent corporation’s

vania Surplus Lines Association on

A signed copy of the RCT-122 tax

FEIN must be provided. Also provide the

report must be sent to the Pennsyl-

behalf of the Pennsylvania Insur-

telephone number and email address of

vania Surplus Lines Association on

ance Department, to 180 Sheree

behalf of the Pennsylvania Insurance

Blvd., Ste. 3100, Exton, PA 19341

the taxpayer.

RCT-122

Instructions For Rct-122 - Gross Premiums Tax - Premiums Paid To Unauthorized Foreign Insurance Companies

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