SECTION 2. CHANGES

DOMESTIC ASSET/LIABILITY PERCENTAGES FOR 2009. The Secretary determines the domestic asset/liability percentage separately for life insurance

companies and property and liability insurance companies. For the first taxable year beginning after December 31, 2008, the relevant domestic asset/liability percentages are:

138.5 percent for foreign life insurance companies, and

193.4 percent for foreign property and liability insurance companies.

.02 DOMESTIC INVESTMENT YIELDS FOR 2009. The Secretary is required to prescribe separate domestic investment yields for foreign life insurance companies and for foreign property and liability insurance companies. For the first taxable year beginning after December 31, 2008, the relevant domestic investment yields are:

5.2 percent for foreign life insurance companies, and

4.2 percent for foreign property and liability insurance companies.

.03 SOURCE OF DATA FOR 2009. The section 842(b) percentages to be used for the 2009 tax year are based on tax return data following the same methodology used for the 2008 year.

SECTION 3. APPLICATION—ESTIMATED TAXES

To compute estimated tax and the installment payments of estimated tax due for taxable years beginning after December 31, 2008, a foreign insurance company must compute its estimated tax payments by adding to its income other than net investment income the greater of (i) its net investment income as determined under section 842(b)(5), that is actually effectively connected with the conduct of a trade or business within the United States

2010–35 I.R.B. 309 August 30, 2010