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  • Part 13: Part 13: Insurance Companies

    • Article 74 - Policy Statement on Insurance Companies

      Insurers are liable to tax under these Regulations on the basis of their Accounting Profits, determined by accounts prepared in accordance with GAAP (as defined by Article 15(2)) and the laws of the QFC. A QFC Captive Insurer or a Reinsurer may elect for its Chargeable Profits to be charged to tax at the Concessionary Rate in accordance with Part 15.

      Amended (as from 18th June 2014)

    • Article 75 - Taxation of Insurers

      (1) This Part applies to all QFC Entities licensed to carry on business as an Insurer.
      (2) Subject to the provisions of this Part, an Insurer is liable to tax on its Accounting Profit as defined by Article 15, and as adjusted by these Regulations.
      (3) An Insurer is taxable on investment income generated from its Licensed Activity.
      (4) The funded basis of accounting is not acceptable for the purpose of these Regulations.

    • Article 76 - Provisions

      (1) In arriving at its Chargeable Profits, an Insurer shall be entitled to a deduction for any specific provisions established in respect of a present obligation arising from a past event, provided that the past event occurred after the commencement date of these Regulations.
      (2) In arriving at the Chargeable Profits of an Insurer, no deduction may be allowed in respect of provisions of a general nature or for equalisation or catastrophe reserves established in respect of future events.

    • Article 77 - Takaful

      (1) This Article applies to any Insurer that—
      (a) is an Islamic Financial Institution which conducts Islamic Financial Business which is Insurance Business; or
      (b) is an Authorised Firm which conducts Insurance Business by means of an Islamic Window and complies with Chapter 8 of the Islamic Finance Rules 2005.
      (2) An Insurer meeting the requirements of Article 77(1) shall be referred to as a Takaful Entity.
      (3) A Takaful Entity shall set off the net surplus or deficit attributable to Takaful Business for an Accounting Period against Chargeable Profits of the same Accounting Period.
      (4) Takaful Business for the purposes of this Article shall mean the Insurance Business referred to in Article 77(1)(a) or Article 77(1)(b) as applicable, and carried on by the relevant Islamic Financial Institution or Authorised Firm referred to in Article 77(1)(a) or Article 77(1)(b), as applicable.
      Amended (as from 18th June 2014)

    • Article 78 - QFC Captive Insurers

      (1) A QFC Entity that is a QFC Captive Insurer may elect for its Chargeable Profits to be charged to tax at the Concessionary Rate in accordance with Part 15.
      Amended (as from 18th June 2014)

    • Article 79 - Reinsurers

      A Reinsurer may elect for its Chargeable Profits arising from its Reinsurance Business to be charged to tax at the Concessionary Rate in accordance with Part 15.

      Amended (as from 18th June 2014)

    • Article 80 - [Deleted]

      Deleted (as from 18th June 2014)

    • Article 81 - [Deleted]

      Deleted (as from 18th June 2014)

    • Article 80 - Cessation of Business

      (1) An Insurer, ceasing to effect Contracts of Insurance, will be treated as being in a period of run-off until all liabilities to policyholders relating to the Insurance Business have been met.
      (2) During the period of run-off, an Insurer will be entitled to all reliefs and allowances provided for within these Regulations, including but not limited to the carry forward of tax losses from previous Accounting Periods.
      Amended (as from 18th June 2014)