SECTION 2. CHANGES

DOMESTIC ASSET/LIABILITY PERCENTAGES FOR 2010. 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, 2009, the relevant domestic asset/liability percentages are:

143.7 percent for foreign life insurance companies, and

190.5 percent for foreign property and liability insurance companies.

.02 DOMESTIC INVESTMENT YIELDS FOR 2010. 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, 2009, the relevant domestic investment yields are:

3.3 percent for foreign life insurance companies, and

3.4 percent for foreign property and liability insurance companies.

.03 SOURCE OF DATA FOR 2010. The section 842(b) percentages to be used for the 2010 tax year are based on tax return data following the same methodology used for the 2009 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, 2009, 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 for the relevant period, or (ii) the minimum effectively connected net investment income under section 842(b) that would result from using the most recently available domestic asset/liability percentage and do

September 26, 2011 450 2011–39 I.R.B.