The implementation of the EU (Insurance and Reinsurance) Regulations 2015 (S.I. No. 458 of 2015), (for reporting periods commencing on or after 1 January 2016), have led to certain changes in how life insurers report surplus transfer to shareholders, which is the starting point for the NCI computation.
As Form 28 will no longer be prepared by life assurance companies subject to Solvency II, Revenue have confirmed that the surplus transfer to shareholders can be identified in the Actuarial Report on Technical Provisions (ARTP).
The annual actuarial investigation of the long term business fund to support the identification of the surplus transfer is still required post Solvency II, in accordance with the Insurance Act 1989. The Head of Actuarial Function (HoAF) is expected to make a recommendation to the board in relation to the amount of the surplus to be transferred to shareholders. The board will then consider this recommendation for its approval. The HoAF will provide the ARTP to the board on an annual basis, which is a requirement for all insurance undertakings under Solvency II. The ARTP is the report on the year end valuation and this will be available prior to the submission of the corporation tax return.
As part of their tax computations, life assurance companies should submit the following information to the Revenue:
- a formal statement of amount of the surplus transferred to shareholders;
- the recommendation of the amount of the surplus transfer to shareholders by the HoAF; and
- full details of any alterations, amendment and departures (if any) from the surplus transfer figure as initially recommended by the HoAF.
The Revenue may also request a copy of the ARTP.
A link to the Revenue's eBriefing is here.