Tax liability insurance products fully or partially indemnify the insured’s tax risks, offering coverage for scenarios such as tax liabilities imposed by tax authorities, defence costs against tax claims, and gross-up taxes on proceeds. This coverage effectively transfers tax liability to the insurance company, providing businesses with financial protection against unexpected tax liabilities.
Compared to America and Europe, the tax liability insurance market in Asia is still nascent, presenting significant growth opportunities. Notable players in the region include India, Singapore, and Australia, where tax liability insurance is readily available.
In this Update, we discuss the benefits and coverage of tax liability insurance, global market trends, and the tax challenges that businesses may face in Singapore. Our Tax team possesses extensive experience in tax insurance, and are well-equipped to advise on any tax challenges you may face.
For more information, click here to read the full Legal Update.
