Question & AnswerQ&A (Republic Act No. 1504)
A tax of three per centum (3%) of the total premiums collected is imposed on every person, company, or corporation doing insurance business in the Philippines, except purely cooperative companies or associations.
No, purely cooperative companies or associations, which are conducted by their members with money collected among themselves solely for their own protection and not for profit, are exempt from the tax on insurance premiums.
No, premiums refunded within six months after payment on account of rejection of risk or returned for any other reason to the person insured are not included in the taxable receipts.
No, no tax shall be paid upon reinsurance by a company that has already paid the tax on those premiums.
Premiums collected or received by any branch of a domestic corporation doing business outside the Philippines on account of life insurance of the insured who is a non-resident are exempt if a percentage tax on such premiums is imposed by the foreign country where the branch is established.
Domestic insurance companies suffering from impairment of capital (owing 50% or more of their indebtedness as a result of the last war) are exempt from the provisions of this section for a period of four years from the passage of this amendatory Act.
They shall pay one per centum (1%) of the total premiums collected within the first five years after their organization and three per centum (3%) of the premiums collected thereafter.
Agents authorized to procure policies on risks located in the Philippines for foreign companies not authorized to do business in the Philippines must make a yearly report to the Collector of Internal Revenue of all premiums received and pay a tax equal to twice the tax imposed in Section 255 at the same time, subject to the same delinquency penalty.
No, the provisions of Section 258 do not apply to reinsurance.
Such owners must report each insurance case to the Insurance Commissioner and the Collector of Internal Revenue and pay a tax of five per centum (5%) on the premiums in the manner required by Section 255, subject to penalties for failure to do so.