The IRS today released an advance version of Rev. Proc. 2018-45 that provides the domestic asset / liability percentages and domestic investment yields needed by foreign life insurance companies and by foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) for tax years beginning after December 31, 2016.
Read Rev. Proc. 2018-45 [PDF 15 KB]
Domestic asset / liability percentages for 2017 (first tax year beginning after December 31, 2016) |
|
126.3% |
For foreign insurance companies under Part I of subchapter L |
194.5% |
For foreign insurance companies under Part II of subchapter L |
Domestic investment yields for 2017 (first tax year beginning after December 31, 2016) |
|
4.5% |
For foreign insurance companies under Part I of subchapter L |
3.8% |
For foreign insurance companies under Part II of subchapter L |
To compute estimated tax and the installment payments of estimated tax, a foreign insurance company must compute its estimated tax payments by adding to its income (other than net investment income) the greater of:
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