Regulation 5
Transfer-in amounts for qualifying businesses
of Income Tax (Deduction for Special Reserves of Approved General Insurers) Regulations 2006
Subregulation 1
For the purposes of regulation 4 and subject to paragraph (2), the transfer-in amount for a qualifying business dealing with any of the offshore risks described in regulation 3(a) to (e) for the basis period for any year of assessment shall be —
an amount calculated by multiplying the percentage specified in column (A) in the Schedule by the net premiums written in the basis period with respect to the qualifying business; or
the amount of underwriting gains derived in the basis period with respect to the offshore risks in the qualifying business,whichever is the lower.
Subregulation 2
Where the aggregate of the amounts determined in accordance with paragraph (1) for all the qualifying businesses referred to in that paragraph of an approved general insurer exceeds his OIF gains, the transfer-in amount for each of the qualifying businesses of the insurer shall be such amount as may be determined by the insurer provided that —
such transfer-in amount as determined by him for each of the qualifying businesses does not exceed the amount determined in accordance with paragraph (1) for that qualifying business; and
the aggregate of such transfer-in amounts as determined by him does not exceed his OIF gains.
Subregulation 3
Notwithstanding paragraph (2), if the Comptroller is satisfied that any determination under paragraph (2) is not in compliance with the requirement under sub-paragraph (a) or (b) of that paragraph, then the transfer-in amount for each of the qualifying businesses shall be such amount as the Comptroller determines it should be for the purpose of compliance with that requirement.
Subregulation 4
For the purpose of paragraph (2), “OIF gains”, in relation to an approved general insurer, means the amount of underwriting gains derived in the basis period concerned in the insurance fund established by the insurer for offshore policies as required under section 17 of the Insurance Act (Cap. 142).
Subregulation 5
The transfer-in amount for a qualifying business dealing with the offshore risks described in regulation 3(f) for the basis period for any year of assessment shall be an amount equal to —
12% of the net premiums written in the basis period with respect to the offshore risks in the qualifying business; or
50% of the underwriting gains derived in the basis period with respect to the offshore risks in the qualifying business,whichever is the higher.