Provision for agricultural insurance catastrophe risk insurance reserve to enjoy income tax deduction

In the report, "Extraction of agricultural catastrophic risk on the insurance reserve fund corporate income tax deduction notice", the two departments pointed out that the insurance companies to operate the central government and local governments to subsidize the planting industry, insurance premiums, and by not year to subsidize insurance premiums of more than 25% of the proportion of provision for catastrophic risk reserves are allowed to genuinely be deducted before the enterprise income tax.

According to the notification, this year's deductible catastrophic risk reserves = current year premium income × 25% - last year in pre-tax deductible catastrophic risk reserves balances balance. If the amount calculated by the above formula is negative, should be adjusted by the amount of taxable income that year.

The two departments said the move is based on "The People's Republic of China Enterprise Income Tax Law" and the "Regulations for the Implementation of the PRC Enterprise Income Tax Law," the relevant provisions of the implementation of active support to solve the "three rural" issue to promote the insurance companies to expand the agricultural insurance business to increase agricultural production to resume after catastrophe.

Two-sector demand, insurers should be earmarked according to the principles of establishing and improving the use of catastrophe risk management system of reserves. This notification implementation deadline from January 1, 2008 until December 31, 2010 only.