Singapore plans to abolish tax exemptions for captive insurers to meet the requirements of the OECD's Base Erosion and Profit Shifting (BEPS) standards. Captive insurers registered in Singapore currently enjoy tax exemption on qualifying offshore income, which includes underwriting premiums (excluding third-party insurance business) as well as dividend and interest income from outside Singapore.

        In March 2016, Singapore announced that, effective April 1, 2018, captive insurers covered under the Insurance Business Development umbrella scheme would be eligible for a 10% concessionary tax rate.

        By the end of 2016, there were 71 active captive insurers registered in Singapore, including 3 new companies added in December, and not a single captive insurer exited the market during the year.

        With the commercial insurance cycle at its bottom, Asia's captive market remains in a growth phase, as newly established captive insurers seek to lower insurance costs and strengthen risk management and loss prevention.

Source: captivereview.com