Recording of advance tax: SECP proposes amendments to insurance regulatory framework

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to insurance regulatory framework for recording of advance tax.

In this connection, the SECP, to provide the manner of recording advance advance/withholding tax in the books of life insurance companies as well as management of investment in government securities by life insurance companies, has proposed amendments in the regulatory framework for insurance companies.

The SRO 1514(I)/2023 and SRO 1516(I)/2023, proposing amendments to the Insurance Rules, 2017 and the Insurance Accounting Regulations, 2017, respectively, have been placed on SECP’s website.

As per the existing framework, life insurance companies are required to hold a specified percentage of government securities against the advance/withholding tax, which has an impact on the liquidity position of insurance companies. The proposed amendments aim to ease the burden on life insurance companies though withdrawal of the requirements of holding a specified percentage of government securities against the advance/withholding tax and bring standardization to the procedure for recording advance /withholding tax.

All stakeholders and other interested parties may submit their feedback and suggestions within thirty days of the issuance of SROs at jibran.paracha @secp.gov.pk or talal.usmani @secp.gov.pk.

Copyright Business Recorder, 2023