Section 21

in the case of an insurance company whether mutual or proprietary (other than a life insurance company) where the gains or profits accrue in part outside Brunei Darussalam, the gains or profits on which tax is payable shall be ascertained by taking the gross premiums and interest and other income received or receivable in Brunei Darussalam (less any premium returned to the insured and premiums paid on re-insurances), and deducting from the balance so arrived at a reserve for unexpired risks at the percentage adopted by the company in relation to its operations as a whole for such risks at the end of the period for which the gains or profits are being ascertained, and adding thereto a reserve similarly calculated for unexpired risks outstanding at the commencement of such period, and from the net amount so arrived at deducting the actual losses (less the amount recovered in respect thereof under re-insurance) the agency expenses in Brunei Darussalam and a fair proportion of the expenses of the head office of the company;

in the case of a life insurance company, whether mutual or proprietary, the gains or profits on which tax is payable shall be the investment income less the management expenses, including commission:

Provided that where such company received premiums outside

Brunei Darussalam, the gains or profits shall be the same proportion of the total investment income of the company as the premiums received in Brunei Darussalam bore to the total premiums received after deducting from the amount so arrived at the agency expenses in Brunei Darussalam and a fair proportion of the expenses of the head office of the company;

Income Tax 60

in the case of an insurance company carrying on life insurance business in conjunction with any other insurance business, the assessment of the gains or profits on which tax is payable shall be made in one sum, but the gains or profits arising from the life insurance business shall be computed in accordance with the provisions of paragraph (b) as if such life insurance business were a separate business from the other insurance business carried on by the company.