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DR 2: Shareholder base allowable deduction of life insurer
or “Life insurers can deduct certain expenses from their shareholder income, but not from policyholder income”
You could also call this:

“Rules for claiming deductions on life reinsurance premiums paid to overseas reinsurers”

If you’re a life insurer, you can’t claim a deduction for life reinsurance premiums in two situations:

  1. When the life reinsurance policy wasn’t offered in New Zealand and wasn’t entered into in New Zealand.

  2. When you pay a life reinsurance premium to a life reinsurer who lives in another country, and there’s an agreement between New Zealand and that country that says New Zealand won’t tax that premium.

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Next up: DR 4: Life insurers' claims

or “Claims life insurers can deduct from their taxes”
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Part D Deductions
Life insurance business expenditure

DR 3Life reinsurance premiums to reinsurer outside New Zealand

  1. A life insurer is denied a deduction for life reinsurance premiums they incur if the relevant life reinsurance policy,—

  2. was not offered in New Zealand; and
    1. was not entered into in New Zealand.

      1. A life insurer is denied a deduction for a life reinsurance premium incurred under a life reinsurance policy with a life reinsurer who is resident in a country or territory outside New Zealand if the life reinsurance premium is excluded from taxation by New Zealand under a double tax agreement between New Zealand and the country or territory.

      Notes
      • Section DR 3: substituted, on , by section 94(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DR 3 heading: replaced, on , by section 11(1) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3(1) heading: replaced, on , by section 11(2) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3(1)(a): amended, on , by section 38 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section DR 3(2) heading: inserted, on , by section 11(3) (and see section 11(5) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3(2): inserted, on , by section 11(3) (and see section 11(5) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3 list of defined terms amount: repealed, on , by section 11(4)(a) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3 list of defined terms double tax agreement: inserted, on , by section 11(4)(b) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3 list of defined terms general permission: repealed, on , by section 11(4)(a) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3 list of defined terms income year: repealed, on , by section 11(4)(a) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
      • Section DR 3 list of defined terms life reinsurer: inserted, on , by section 11(4)(b) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).