Percentages for foreign insurance companies to compute minimum effectively connected net investment income for 2011

September 5: The IRS today released an advance copy of Rev. Proc. 2012-40 [PDF 10 KB], providing the domestic asset / liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) for tax years beginning after December 31, 2010.

Domestic asset/liability percentages for 2011 (i.e., first tax year beginning after December 31, 2010)
166.1%	For foreign life insurance companies
189.6%	For foreign property and liability insurance companies

Domestic investment yields for 2011 (first tax year beginning after December 31, 2010)
3.2%	For foreign life insurance companies
3.2%	For foreign property and liability insurance companies

Rev. Proc. 2012-40 will appear in a future edition of the Internal Revenue Bulletin.

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