SECP Amends Insurance Accounting Regulations

The Securities and Exchange Commission of Pakistan (SECP) has allowed the shareholders’ funds of life insurers to purchase the full amount of adjustable advance withholding tax or refundable tax recorded in the books of the statutory funds. The SECP issued an S.R.O. 312(I)/2025 on Thursday to amend Insurance Accounting Regulations, 2017. The SECP has issued regulations after approval of the Securities and Exchange Policy Board. According to the regulations, the advance withholding tax or refundable tax attributable to a life insurer’s shareholders’ fund shall be recorded in the books of the shareholders’ fund, and the advance withholding or refundable tax attributable to a life insurer’s statutory fund shall be recorded in the books of the respective statutory fund. It shall be permissible for the shareholders’ fund of the life insurer to purchase the full amount of adjustable advance, withholding or refundable tax recorded in the books of the statutory funds against cash or cash equivalent and government securities. The shareholders’ fund shall, however, mandatorily purchase advance, withholding or refundable tax related to the statutory funds, which is adjustable within a period of one year, in cash or cash equivalent and government securities, SECP added.