The Basics: Overseas Placements & NRIT

Modified on Wed, 5 Nov at 8:46 AM

Overseas Placements & Non-Resident Insurance Tax (NRIT)

If you're placing insurance with a foreign resident insurer, heads up — Non-resident Insurer Tax (NRIT) or Withholding Tax could come into play.

As a broker or agent facilitating these policies, it's your responsibility to handle NRIT and any other applicable taxes, making sure they're paid to the appropriate government tax agencies and state revenue offices on behalf of the foreign insurer.

You must consult with your compliance advisors to ensure you comply with applicable Regulations and Laws and understand your obligations.

IMPORTANT: Articles regarding Overseas Placements and NRIT provide guidance on the configuration required in INSIGHT - It is NOT to be relied upon for any Compliance requirements.

Glossary

Term/Phrase	Definition
NRIT	Acronym for Non-Resident Insurance Tax, also knows an Withholding Tax.
Non-Resident Insurer	Known as the Overseas Insurer in INSIGHT
Local Insurer	Generally refers to Australian Authorised Insurers. In INSIGHT, Local Insurers are any insurer where Overseas Insurer is set to No on the Insurer - Classification page of the Insurer wizard.
Transaction	Refers to the transaction in progress in INSIGHT
Placement/Policy	Refers to the policy terms and conditions bound with an Insurer or, depending on context, the transaction pages in INSIGHT.
FSL	Refers to Fire Services Levy or Emergency Services Levy (ESL) - whether the state uses FSL or ESL, this levy is labelled as FSL in INSIGHT.
FBC	Refers to Fire Brigade Charges Scheme administered by PWC Australia, this levy is labelled as FBC in the INSIGHT transaction wizard.

What can you do in INSIGHT?

Configure the Non-resident Insurer Tax rate
Configure an Insurer to be an Overseas Insurer
Configure an Overseas Insurer to apply the Fire Brigade Charges Scheme
Configure an Overseas Insurer if you are a Lloyds Coverholder
Automatically calculate the applicable NRIT amount if the policy is placed with an overseas Insurer
Include the Non-Resident Insurer Tax amount in the Policy Closing document
Include the Fire Brigade Charge amount where applicable in the Policy Closing document
Allocate FSL, Stamp Duty, and Non-Resident Tax amounts to Miscellaneous Creditors for payment processing, auditing and reporting
Generate a Premium Bordereau Report for overseas policies
Generate APRA Form 701

Minimum Requirements

A System Administrator must enable NRIT, contact support@insight.com.au to request activation
Overseas Insurers must be configured
Miscellaneous Creditors for FEL and EQC must be configured (New Zealand Only)
Miscellaneous Creditors for ESL/FSL and Stamp Duty must be configured (Australia Only)
Miscellaneous Creditors for NRIT, GST and Fire Brigade Charges Scheme must be configured (FBC Australia Only)
Ledger defaults and Miscellaneous Creditors must be added to the Ledger Settings

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