One-off 10% tax on insurers' capitalisation reserve

Article 23 of the 2011 Finance Act creates a one-off tax on the capitalisation reserve of insurance companies, mutual insurers and provident institutions. It equals 10% of the reserve at the opening of the current financial year, capped at 5% of equity, is not deductible from corporate tax and is allocated to the National Family Allowance Fund. Due at the close of the financial year in progress at promulgation, it is paid half when the return is filed and half within sixteen months. The same article removes allocations to and releases from this reserve from taxable profit.