SECP Proposes Amendments to Insurance Accounting Regulations 2017

The Securities and Exchange Commission of Pakistan (SECP) has taken a documentation measure to record data of deducted withholding tax or advance tax from the insurance sector for the Federal Board of Revenue (FBR). The SECP has proposed amendments in the Insurance Accounting Regulations, 2017 here on Monday. Under the new regulations, the advance or withholding tax attributable to the shareholder fund of a life insurer shall be recorded in the books of the shareholders’ fund and advance or withholding tax attributable to a statutory fund of a life insurer 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 or withholding tax recorded in the books of the statutory funds against cash or cash equivalent. The shareholders’ fund shall, however, mandatorily purchase advance or withholding tax related to the statutory funds, which is adjustable within a period of one year, in cash or cash equivalent, the revised regulations added.