SECTION 5. DRAFTING

INFORMATION

The principal author of this revenue procedure is Sheila Ramaswamy of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure, contact Sheila Ramaswamy at (202) 622–3870 (not a toll-free call).

companies and for foreign property and liability insurance companies. For the first taxable year beginning after December 31, 2010, the relevant domestic investment yields are:

3.2 percent for foreign life insurance companies, and

3.2 percent for foreign property and liability insurance companies.

.03 SOURCE OF DATA FOR 2011. The section 842(b) percentages to be used for the 2011 tax year are based on tax return data following the same methodology used for the 2010 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, 2010, a foreign insurance company must compute its estimated tax pay

ments 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 domestic investment yield. Thus, for installment payments due after the publication of this revenue procedure, the domestic asset/liability percentages and the domestic investment yields provided in this revenue procedure must be used to compute the minimum effectively connected net investment income. However, if the due date of an installment is less than 20 days after the date this revenue procedure is published in the Internal Revenue Bulletin, the asset/liability percentages and domestic in

2012–40 I.R.B. 425 October 1, 2012