Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 328

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 328
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bridge Reinsurance Limited or Oxbridge Re NS is a CFC at any
time during a taxable year under the special RPII rules, any U.S. Holder that owns ordinary shares on the last day of any such taxable
year must include in gross income for U.S. federal income tax purposes the U.S. Holder’s allocable share of the RPII of Oxbridge
Reinsurance Limited for the entire taxable year, subject to certain modifications. Among other exceptions, the RPII rules do not apply
if the insurance company’s RPII, determined on a gross basis, is less than 20% of such respective entity’s gross insurance
income for such taxable year. We do not believe that the 20% gross insurance income threshold will be met. However, we cannot assure
you that this is or will continue to be the case. Consequently, we cannot assure you that a person who is a direct or indirect United
States shareholder will not be required to include amounts in its income in respect of RPII in any taxable year.

24

United
States tax-exempt organizations who own ordinary shares may recognize unrelated business taxable income.

If
you are a United States tax-exempt organization you may recognize unrelated business taxable income if a portion of our Code Subpart
F insurance income is allocated to you. In general, Code Subpart F insurance income will be allocated to you if we are a CFC as discussed
above and you are a United States 10% shareholder or there is related person insurance income and certain exceptions do not apply. If
you are a United States tax-exempt organization, we advise you to consult your own tax advisor regarding the risk of recognizing unrelated
business taxable income.

Changes
in United States tax laws may be retroactive and could subject us, and/or United States persons who own ordinary shares to United States
income taxation on our undistributed earnings.

The
tax laws and interpretations regarding whether a company is engaged in a United States trade or business, is a CFC, has RPII, or is a
PFIC are subject to change, possibly on a retroactive basis. There are currently no regulations regarding the application of the PFIC
rules to an insurance company and the regulations regarding RPII are still in proposed form. New regulations or pronouncements interpreting
or clarifying such rules may be forthcoming from the IRS. We are not able to predict if, when or in what form such guidance will be provided
and whether such guidance will have a