QuestionsQuestions (IC CIRCULAR LETTER NO. 14-98)
To create an Inter-Agency Committee to oversee and monitor the implementation of the IC-BIR Memorandum of Agreement on insurance companies’ tax payments, and to recommend policies/procedures needed for monitoring compliance.
Department of Finance (DOF), Insurance Commission (IC), and the Bureau of Internal Revenue (BIR), each with specified technical and other representatives.
(1) Taxes due from all insurance companies must be paid at an IC-chosen bank; and (2) insurance companies, as large taxpayers, will no longer pay tax liabilities directly to the Large Taxpayers’ Division.
Premium tax, VAT on non-life policies (except crop insurance), DST, and income tax.
An extension bank teller will service taxpayers at the 2nd Floor of the Insurance Commission Building, 1071 U.N. Avenue, Manila.
It should read “Premium income on direct business in the case of life insurance” instead of “Premium income (net of ceded business) in the case of life insurance.”
A clean photocopy of official receipts of all taxes paid from January 1998 to the present.
The IC-chosen bank must transmit to the IC the hard copies of those returns on the fifth (5th) day following the last day of filing of the said returns.
On the fifteenth (15th) day following the month of DST transactions.
Insurance companies must submit annual statements and additional monthly and quarterly reports in diskettes or other electronic media in addition to hard copies.
For non-life insurance companies: gross premiums (net of returns and cancellations) on direct business of health and accident issued; for life insurance: premium income on direct business (as corrected by the Circular Letter).
Gross receipts or collections of premiums except premium on health and accident by non-life insurance companies.
For non-life: gross premiums (net of returns and cancellation) received for the month in all line of business; for life: total sum insured of all policies issued by all life insurance companies for the month.
It must delist the insurance companies identified as large taxpayers from paying directly to the Large Taxpayers’ Division.
On the fifth (5th) day following the last day these returns were transmitted to the IC-chosen bank.
It takes effect immediately; all circulars, regulations, and orders contrary to or inconsistent with it are revoked or modified accordingly.