# ADDENDUM TO GUIDELINES FOR THE RETURNS ON CALCULATION OF LEVIES FOR TAKAFUL AND INSURANCE BUSINESSES

**ISSUE DATE : 7 APRIL 2025**

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## TABLE OF CONTENTS

1.0 BACKGROUND .............................................................................................................. 2
2.0 CALCULATION OF ANNUAL LEVIES FOR FAMILY TAKAFUL OR LIFE INSURANCE BUSINESS FOR ASSESSMENT YEAR 2025 .................................................................... 3

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## 1.0 BACKGROUND

1.1 The basis for calculation of levies for insurer members (“IM”) carrying on family takaful or life insurance business is “valuation of family takaful liabilities” for family takaful business, or “valuation of life insurance liabilities” for life insurance business.

1.2 Perbadanan Insurans Deposit Malaysia (“PIDM”) notes that certain IMs may require time to manage any increase in annual levies payable in Assessment Year (“AY”) 2025 arising from the implementation of the interim measures relating to Medical and Health Insurance or Takaful (“MHIT”) repricing announced by Bank Negara Malaysia on 20 December 2024 (“MHIT interim measures”).

1.3 In this regard, PIDM is providing a transitional arrangement where an IM carrying on family takaful or life insurance business may exclude the increased portion of the valuation of family takaful or life insurance liabilities in respect of MHIT certificates or policies arising from the implementation of the staggered premium repricing under the MHIT interim measures (“MHIT staggered premium repricing”), from the calculation of levies for AY 2025.

1.4 This document is an addendum (“2025 Addendum”) to:

(a) the Guidelines for the Returns on Calculation of Levies for Takaful and Insurance Businesses, issued on 20 December 2021 (“RCL Guidelines”); and

(b) the Addendum to the Guidelines on Differential Levy Systems Framework for Insurance Companies issued on 30 March 2020, Guidelines on Differential Levy Systems Framework for Takaful Operators issued on 30 March 2020, and the RCL Guidelines, issued on 8 September 2023 (“2023 Addendum”).

1.5 This 2025 Addendum is effective for AY 2025 and shall be read together with the RCL Guidelines and the 2023 Addendum.

1.6 Enquiries relating to this 2025 Addendum may be directed to:

General Line : 03 2173 7436
E-mail : [email protected]

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## 2.0 CALCULATION OF ANNUAL LEVIES FOR FAMILY TAKAFUL OR LIFE INSURANCE BUSINESS FOR ASSESSMENT YEAR 2025

2.1 For purposes of the levy assessment for AY 2025, the calculation of annual levies payable for family takaful or life insurance business as described in paragraph 6.2(a) of the RCL Guidelines (as amended by the 2023 Addendum), has been amended as follows:

| | Provision in the RCL Guidelines, as amended by the 2023 Addendum | Amended provision applicable for AY 2025 |
| :--- | :--- | :--- |
| **IMs carrying on family takaful business** | Total valuation of family takaful liabilities of certificates reported as Business within Malaysia, as at 31 December of the preceding assessment year, excluding the unit portion of investment-linked takaful certificates. | Total valuation of family takaful liabilities of certificates reported as Business within Malaysia, as at 31 December of the preceding assessment year, excluding: (i) the unit portion of investment-linked takaful certificates; and (ii) the increased portion of the liabilities in respect of MHIT certificates arising from the implementation of the MHIT staggered premium repricing, as applicable. |
| **IMs carrying on life insurance business** | Total valuation of life insurance liabilities of policies reported as Business within Malaysia, as at 31 December of the preceding assessment year, excluding the unit portion of investment-linked policies. | Total valuation of life insurance liabilities of policies reported as Business within Malaysia, as at 31 December of the preceding assessment year, excluding: (i) the unit portion of investment-linked policies; and (ii) the increased portion of the liabilities in respect of MHIT policies arising from the implementation of the MHIT staggered premium repricing, as applicable. |

2.2 Paragraph 6.4 of the RCL Guidelines on the sources of information in completing the returns on calculation of levies (“RCL”) is now extended to include other supporting information of the IM on the exclusion of the increased portion of the liabilities in respect of MHIT certificates or policies arising from the implementation of the MHIT staggered premium repricing, for AY 2025.

2.3 These adjusted figures and explanation on the adjustment for the increased portion of the liabilities in respect of MHIT certificates or policies arising from the implementation of the MHIT staggered premium repricing are to be reported in Form F-1 (for family takaful business) and Form L-1 (for life insurance business) in the RCL – Reporting Form for AY 2025.

**Perbadanan Insurans Deposit Malaysia**
**7 April 2025**