Performance Bond Tax

Dear Sir/Madam,

I would be grateful if you could kelp me to find an answer to a doubt.
I wonder if a bond is taxed according to the tax basis of the territory where the risk is set (or the "Works" are performed) or according to the tax basis of the territory where the bond is issued (i.e. Bond issued in UK and subject to the UK legislation).

Thank you for your support.
Kind regards

[Riskwriter]

I am not aware of the UK legislation laws - and as such I cannot comment.

However, if it helps any, bonds written in the US are not subject to any tax that I am aware of.

[mrbond]

Originally Posted by Riskwriter

I am not aware of the UK legislation laws - and as such I cannot comment.

However, if it helps any, bonds written in the US are not subject to any tax that I am aware of.

There are taxes on premiums, but in most cases the surety company pays the tax, not the principal. The only state I am aware of where a tax is also paid by the principal is KY.