Because Treasury has started issuing the expanded Michigan EITC supplemental check payments for tax year 2022, it is no longer necessary to view or manually update your address. If you moved between last year and now, please be sure your new address is on your 2023 individual income tax return filing.
Insurance Companies and Financial Institutions
Insurance companies will pay a premiums tax instead of the corporate income tax. The premiums tax is calculated at 1.25% of gross direct premiums written on property or risk located in Michigan. Insurance companies are permitted certain exclusions from the tax base and a limited number of insurance-specific credits.
Foreign insurance companies are subject to the retaliatory tax.
Annual returns are due before March 2 after the end of the tax year. The tax year of an insurance company is the calendar year.
Financial institutions are taxed at .29% of net capital in lieu of the corporate income tax. Net capital is the institution's equity capital minus the average daily book value of U.S. and Michigan obligations calculated over a period of 5 tax years. The financial tax base is apportioned using the gross business factor.
A financial institution has nexus with Michigan if it 1) is physically present in the state for more than one day, 2) actively solicits sales in Michigan and has gross receipts of $350,000 or more sourced to Michigan, or 3) has an ownership or beneficial interest in a flow-through entity directly, or indirectly through 1 or more flow-through entities, which has substantial nexus in this state.
Financial institutions may be part of a unitary business group.