Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 03 - Insurance Companies › Section 35-3-10-03-100 - GROSS INCOME

Current through June 25, 2024
1. Gross receipts
				  or gross income of all insurance companies, including mutuals, reciprocals, and
				  all types of insurance companies or associations, of whatever nature or by
				  whatever term designated, shall include premiums, reinsurance premiums,
				  considerations for annuities and supplementary contracts, interest including
				  interest income on mortgage loans secured by real estate located in
				  Mississippi, rent, dividends, and all other income, regardless of character or
				  designation, unless otherwise exempted or provided for, under the provisions of
				  the act. Gross income shall be computed on an accrual basis unless, because of
				  taxpayer's accounting system, a more accurate computation can be made on a
				  receipts basis.
2. If reserve funds
				  maintained for the purpose of liquidating policies and contracts at maturity or
				  on surrender are transferred to surplus, the portion, so transferred that has
				  been taken as a deduction from Mississippi gross income in the current year or
				  prior years shall be included in Mississippi gross income for the year in which
				  such transfer is made.
3. Code
				  Section
				  27-7-15(4)(g),
				  provides for the exclusion of gross income received by domestic corporations
				  taxable in another state, and derived from business activity conducted outside
				  this state. The Commissioner has construed the provision as permitting a
				  domestic company to exclude only direct premiums and insurance considerations
				  derived from other taxable states and jurisdictions when such income is earned
				  through the operation of a bona fide office, agency or place of business
				  without the State of Mississippi. When a company excludes income, it must
				  exclude all expenses incurred in earning that income, including retaliatory
				  premium taxes. All reinsurance assumed premiums of a domestic company and all
				  other income must be included in Mississippi income, unless earned from sources
				  without the state as defined in the statute.
4. Mississippi gross income from foreign
				  insurance companies shall include all direct premiums and considerations
				  derived from within this state as shown by the company's annual statement, and
				  all reinsurance assumed premiums received from Mississippi companies. There
				  also shall be included the income from intangible property including interest
				  income on mortgage loans secured by real estate located in Mississippi, if the
				  evidence of ownership has acquired a business, commercial or actual situs in
				  this state; rentals or royalties from property or any interest in property
				  within the state, and income from the operation, ownership or sale of any
				  property within this state.
5. Life
				  insurance companies must report their income under the direct accounting
				  method. Other insurance companies in lieu of the direct accounting method may
				  determine their Mississippi net income from underwriting by apportioning to
				  this state a part of their total net underwriting income. Companies electing to
				  use the apportionment method should compute their Mississippi net income in the
				  following manner:
a. From a company-wide net
				  underwriting gain, as shown by the company's annual statement, deduct policy
				  dividends, which qualify as a deduction.
b. Apply to the remainder so computed, the
				  ratio between Mississippi net premiums written and company-wide net premiums
				  written.
c. To the Mississippi net
				  income thus apportioned add the net income from intangible property if the
				  evidence of ownership has acquired a business, commercial or actual situs in
				  this state; the net rental and royalty income from property or any interest in
				  property within this state; and net income from the operation, ownership or
				  sale of any property within this state.
d. Deduct from the total so computed any net
				  losses from the rental, lease, operation, ownership or sale of any property
				  within this state.
e. Add or deduct
				  other income or other losses, which are not specific to any state, in the ratio
				  of Mississippi net premiums written to company- wide net premiums
				  written.