The Finance Act 2008 has introduced amendments to section 19 of the Income Tax Act on taxation of life insurance companies on the following basis:
The actuarial surplus recommended by the actuary to be transferred from the life fund to shareholders, whether or not actual transfer has occurred
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Any other amount transferred from the life fund to the benefit of the shareholders
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30% of management expenses and commission that is in excess of the maximum amounts allowed by the
- Insurance Act
Where an actuarial deficit exists that require funding by the shareholders, it will be treated as tax deductible subject to the surplus recommended by the actuary for transfer to shareholders in the
previous year.
