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  1. IRC
  2. Subtitle D
  3. Chapter 34
  4. Subchapter A
  5. § 4371

Sec. 4371. Imposition Of Tax

There is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax at the following rates:
I.R.C. § 4371(1) Casualty Insurance And Indemnity Bonds —
4 cents on each dollar, or fractional part thereof, of the premium paid on the policy of casualty insurance or the indemnity bond, if issued to or for, or in the name of, an insured as defined in section 4372(d);
I.R.C. § 4371(2) Life Insurance, Sickness, And Accident Policies, And Annuity Contracts —
1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of life, sickness, or accident insurance, or annuity contract; and
I.R.C. § 4371(3) Reinsurance —
1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of reinsurance covering any of the contracts taxable under paragraph (1) or (2).
(Aug. 16, 1954, ch. 736, 68A Stat. 521; Mar. 13, 1956, ch. 83, Sec. 5(9), 70 Stat. 49; Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 141(a), 72 Stat. 1300; June 25, 1959, Pub. L. 86-69, Sec. 3(f)(3), 73 Stat. 140; June 21, 1965, Pub. L. 89-44, title VIII, Sec. 804(b), 79 Stat. 160; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1904(a)(12), 90 Stat. 1812; July 18, 1984, Pub. L. 98-369, div. A, title II, Sec. 211(b)(23), 98 Stat. 757; Dec. 22, 1987, Pub. L. 100-203, title X, Sec. 10242(c)(3), 101 Stat. 1330-423; Dec. 19, 1989, Pub. L. 101-239, title VII, Sec. 7811(i)(11), 103 Stat. 2411.)
BACKGROUND NOTES
Amendments to Chapter
1976--Pub. L. 94-455, title XIX, 1904(a)(12), Oct. 4, 1976, 90 Stat. 1812, substituted “Policies Issued by Foreign Insurers” for “Documentary Stamp Taxes” as chapter heading and struck out items relating to subchapters C to E.
AMENDMENTS
1989 - Par. (2). Pub. L. 101-239 struck out ‘, unless the insurer is subject to tax under section 842(b)’ after ‘or annuity contract’.
1987 - Par. (2). Pub. L. 100-203 substituted ‘section 842(b)’ for ‘section 813’.
1984 - Par. (2). Pub. L. 98-369 substituted ‘section 813’ for ‘section 819’.
1976 - Pub. L. 94-455 substituted in par. (1) ‘4 cents’ for ‘four cents’ and ‘premium paid’ for ‘premium charged’, in pars. (2) and (3) ‘1 cent’ for ‘one cent’ and ‘premium paid’ for ‘premium charged’, and struck out provision following par. (3) relating to computation of tax on premium paid in lieu of premium charged.
1965 - Pub. L. 89-44 inserted last sentence relating to computation of tax on premium paid in lieu of premium charged.
1959 - Par. (2). Pub. L. 86-69 substituted ‘section 819’ for ‘section 816’.
1958 - Pub. L. 85-859 substituted ‘is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax’ for ‘shall be imposed a tax on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer’.
1956 - Par. (2). Act Mar. 13, 1956, substituted ‘section 816’ for ‘section 807’.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such amendment relates, see section 7817 of Pub. L. 101-239, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable to taxable years beginning after Dec. 31, 1987, see section 10242(d) of Pub. L. 100-203, set out as a note under section 816 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98-369, set out as an Effective Date note under section 801 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94-455, set out as a note under section 4041 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable with respect to policies, bonds, and contracts with respect to which the tax imposed by this section is required to be paid on the basis of a return, see section 804(c) of Pub. L. 89-44, set out as a note under section 4374 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-69 applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-69, set out as an Effective Date note under section 381 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective on first day of first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1(c) of Pub. L. 85-859.
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956, set out as a note under section 316 of this title.
PRIOR PROVISIONS
The provisions of a prior chapter 34, Documentary Stamp Taxes, were set out as:
Subchapter A, Issuance of capital stock and certificates of indebtedness by a corporation, comprising sections 4301 to 4305 and 4311 to 4316.
Subchapter B, Sale or transfers of capital stock and certificates of indebtedness of a corporation, comprising sections 4321 to 4324, 4331 to 4333, 4341 to 4345, and 4351 to 4354.
Subchapter C, Conveyances, comprising sections 4361 to 4363.
Subchapter D, Policies issued by foreign insurers, comprising sections 4371 to 4375.
Subchapter E, Miscellaneous provisions applicable to documentary stamp taxes, comprising sections 4381 to 4384.
Subchapters A and B were repealed by Pub. L. 89-44, title IV, 401(a), June 21, 1965, 79 Stat. 148.
Subchapter C was struck out by Pub. L. 94-455, title XIX, 1904(a)(12), Oct. 4, 1976, 90 Stat. 1812.
Subchapter D heading was struck out, sections 4371 to 4373 were reenacted without change, section 4374, “liability for tax”, was substituted for section 4374, “payment of tax”, and section 4375 was struck out by Pub. L. 94-455, title XIX, 1904(a)(12).
Subchapter E, section 4381 was repealed by Pub. L. 89-44, title IV, 401(c), June 21, 1965, 79 Stat. 148, and sections 4382 to 4384 were struck out by Pub. L. 94-455, title XIX, 1904(a)(12), Oct. 4, 1976, 90 Stat. 1812.
The subject matter of the prior sections was as follows:
A prior section 4301, acts Aug. 16, 1954, ch. 736, 68A Stat. 513; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1293; Apr. 8, 1960, Pub. L. 86-416, 1, 74 Stat. 36, imposed a tax, based upon the actual value of the certificates or shares, upon each original issue of shares or certificates of stock issued by a corporation.
A prior section 4302, acts Aug. 16, 1954, ch. 736, 68A Stat. 513; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1293, made provision for a determination of tax in the case of recapitalization.
A prior section 4303, acts Aug. 16, 1954, ch. 736, 68A Stat. 514; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1293 granted exemptions for common trust funds, pooled investment funds, and installment purchases of certain shares or certificates, and directed attention to section 4382 for other exemptions.
A prior section 4304, acts Aug. 16, 1954, ch. 736, 68A Stat. 514; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, called for the affixing of the stamps representing the tax imposed by section 4301 upon the stock books or corresponding records of the corporation.
A prior section 4305, acts Aug. 16, 1954, ch. 736, 68A Stat. 514; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, made cross-references to sections 4381 and 4384 and subtitle F.
A prior section 4311, acts Aug. 16, 1954, ch. 736, 68A Stat. 514; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, imposed a tax on all certificates of indebtedness issued by a corporation.
A prior section 4312, acts Aug. 16, 1954, ch. 736, 4312, formerly 4313, 68A Stat. 514, renumbered Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, provided that every renewal of any certificate of indebtedness should be taxed as a new issue.
A prior section 4313, acts Aug. 16, 1954, ch. 736, 4313, formerly 4314, 68A Stat. 514, renumbered Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, provided for the method of determining the rate of taxation in the case of a bond conditioned for the repayment of money and given in a penal sum greater than the debt secured.
A prior section 4314, acts Aug. 16, 1954, ch. 736, 4314, formerly 4315, 68A Stat. 514, renumbered Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, granted an exemption to instruments under the terms of which the obligee was required to make installment payments of not more than 20 percent annually, and made reference to section 4382 for other exemptions.
A prior section 4315, acts Aug. 16, 1954, ch. 736, 4315, formerly 4316, 68A Stat. 514, renumbered and amended Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1294, made cross references to sections 4381 and 4384 and subtitle F.
A prior section 4321, acts Aug. 16, 1954, ch. 736, 68A Stat. 515; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1295; Sept. 21, 1959, Pub. L. 86-344, 5(a), 73 Stat. 619, imposed a tax upon the sale or transfer of shares or certificates of stock or of rights to subscribe to receive such shares or certificates issued by a corporation.
A prior section 4322, acts Aug. 16, 1954, ch. 736, 68A Stat. 515; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1295, granted exemptions in the case of sales by brokers or registered nominees and in the case of odd lot sales.
A prior section 4323, acts Aug. 16, 1954, ch. 736, 68A Stat. 516; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1296; Sept. 21, 1959, Pub. L. 86-344, 5(b), 73 Stat. 619, called for the affixing of the stamps representing the tax upon the books of the corporation and the certification of the actual value of the shares transferred, and made reference to section 4352 in the case of transfers shown otherwise than by the books of the corporation.
A prior section 4324, acts Aug. 16, 1954, ch. 736, 68A Stat. 516; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1296, made cross references to other sections and subtitles for definitions, penalties, and other general and administrative provisions.
A prior section 4331, acts Aug. 16, 1954, ch. 736, 68A Stat. 516; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1296, imposed a tax upon each sale or transfer of any certificate of indebtedness issued by a corporation.
A prior section 4332, acts Aug. 16, 1954, ch. 736, 68A Stat. 516; Jan. 28, 1956, ch. 19, 70 Stat. 9; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1296, granted exemptions in the case of transfers and sales by brokers and installment purchases of obligations and made reference to other exemptions listed in other sections.
A prior section 4333, acts Aug. 16, 1954, ch. 736, 68A Stat. 516; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1296, made cross references to other sections and subtitles for definitions, penalties, and other general and administrative provisions.
A prior section 4341, acts Aug. 16, 1954, ch. 736, 68A Stat. 517; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1297, granted an exemption from the imposition of the tax under sections 4321 and 4331 in the case of transfers as collateral security and as security for performance.
A prior section 4342, acts Aug. 16, 1954, ch. 736, 68A Stat. 517; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1297, granted exemptions in the case of delivery or transfer of instruments by a fiduciary to his nominee or between nominees or by a custodian.
A prior section 4343, acts Aug. 16, 1954, ch. 736, 68A Stat. 517; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1297, provided that taxes imposed by sections 4321 and 4331 would not apply in specified cases involving decedents, minors, incompetents, financial institutions, bankrupts, successors, foreign governments and aliens, trustees, and survivors.
A prior section 4344, Pub. L. 85-859, title I, 141(a), Sept. 2, 1958, 72 Stat. 1298, made provision for an exemption from tax in the case of specified loan transactions, worthless stock and obligations, and transfers between certain revocable trusts.
A prior section 4345, acts Aug. 16, 1954, ch. 736, 4345, formerly 4344, 68A Stat. 518, renumbered and amended Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1298, required an exemption certificate setting forth the facts as prescribed by regulations.
A prior section 4346, acts Aug. 16, 1954, ch. 736, 4346, formerly 4345, 68A Stat. 518, renumbered Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1298, made cross reference to other sections for additional exemptions.
A prior section 4351, acts Aug. 16, 1954, ch. 736, 68A Stat. 518; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1299, defined registered nominee and sale or transfer.
A prior section 4352, acts Aug. 16, 1954, ch. 736, 4352, formerly 4353, 68A Stat. 519, renumbered Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1299, provided for the affixing of the stamps required either on the instrument itself or on the memorandum or bill of sale.
A prior section 4353, Pub. L. 85-859, title I, 141(a), Sept. 2, 1958, 72 Stat. 1299, made provision for the payment of tax through the national securities exchanges without the use of stamps.
A prior section 4354, acts Aug. 16, 1954, ch. 736, 68A Stat. 519; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1299, made cross references to section 4384 and subtitle F for penalties and other general and administrative provisions.
A prior section 4361, acts Aug. 16, 1954, ch. 736, 68A Stat. 520; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1299; June 21, 1965, Pub. L. 89-44, title IV, 401(b), 79 Stat. 148, related to the imposition of a tax on each deed, instrument, or writing by which any realty is sold, assigned, transferred, or otherwise conveyed.
A prior section 4362, acts Aug. 16, 1954, ch. 736, 68A Stat. 520; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1300, related to exemptions to the tax imposed by former section 4361.
A prior section 4363, acts Aug. 16, 1954, ch. 736, 68A Stat. 520; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1300, related to cross references to former section 4384 and subtitle F of this title.
A prior section 4375, acts Aug. 16, 1954, ch. 736, 68A Stat. 522; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1301, made cross-references to section 4384 and subtitle F.
A prior section 4381, acts Aug. 16, 1954, ch. 736, 68A Stat. 523, Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1302, defined certificates of indebtedness, corporation, and shares or certificates of stock.
A prior section 4382, acts Aug. 16, 1954, ch. 736, 68A Stat. 523; Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1302; Oct. 16, 1962, Pub. L. 87-834, 6(e)(2), 76 Stat. 984, granted exemptions to Government and state obligations, etc.
A prior section 4383, Pub. L. 85-859, title I, 141(a), Sept. 2, 1958, 72 Stat. 1303, related to the taxation of continuing and terminated partnerships.
A prior section 4384, acts Aug. 16, 1954, ch. 736, 68A Stat. 524, 4384, formerly 4383, renumbered and amended Sept. 2, 1958, Pub. L. 85-859, title I, 141(a), 72 Stat. 1303, related to liability for the tax.
1965--Pub. L. 89-44, title IV, 401(a), June 21, 1965, 79 Stat. 148, struck out items relating to subchapters A and B.
Effective Dates of Repeal
Section 701(c)(1) of Pub. L. 89-44 provided that: “The amendments made by section 401 [repealing sections 4301 to 4305, 4311 to 4315, 4321 to 4324, 4331 to 4333, 4341 to 4346, 4351 to 4354 and 4381 of this title] (relating to documentary stamp taxes) shall apply on and after January 1, 1966.”
Repeal of sections 4361 to 4363, 4375, 4382 to 4384 by section 1904(a)(12) of Pub. L. 94-455 effective on the first day of the first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 4041 of this title.