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 September 24, 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:
6. Once the apportionment method of reporting is elected, it must follow for subsequent years unless permission is granted by the Commissioner to change to the direct accounting method. One of a group of affiliated companies may use the apportioned method of reporting only if all the non-life companies of the same group use said method.