Insurers – long-and short term

Not only did Covid-19 and its repercussions put the proverbial cat amongst the pigeons in the insurance industry, the industry is also preparing itself for the adoption of IFRS17 which inevitably comes with tax uncertainty and challenges. BDO’s insurance tax team’s involvement with our various insurance clients, participation in industry initiatives, and industry specific tax contributions keep us abreast of the current economic, market and regulatory events impacting our insurance clients.

Our Insurance tax team has extensive experience in servicing small, medium and large Insurers’ tax needs with 15 years of Insurance tax advisory and compliance experience at tax partner level.

Some of the current challenges facing insurers include:

• Uncertainty on the tax impact of IFRS17 adoption;
• Uncertainty on whether tax legislation will be amended to allow for a smooth transition to IFRS17;
• Will a one-size-fits-all IFRS17 transitional tax provision suit every insurer?;
• Certain long-term insurers feeling the effects of having elected the RPF only fund or vice versa;
• Housing part-Risk, part-Investment product funds in the correct tax fund; and
• The manual return format for long-term insurers and the awaited transition to eFiling.

We look forward to being part of your Insurance journey.