QuestionsQuestions (Republic Act No. 10001)
Republic Act No. 10001 is a law reducing taxes on life insurance policies by amending Sections 123 (tax on life insurance premiums) and 183 (stamp tax on life insurance policies) of the National Internal Revenue Code of 1997.
A tax of two percent (2%) of the total premium collected.
The total premium collected, regardless of whether premiums are paid in money, notes, credits, or any substitute for money.
No. Premiums refunded within six (6) months after payment due to rejection of risk or returned for other reasons to the person insured are not included in the taxable receipts.
No. The law provides that no tax is paid upon reinsurance by a company that has already paid the tax.
Generally, no tax is paid on premiums collected or received by such branch on account of life insurance of nonresident insureds, if any tax on such premiums is imposed by the foreign country where the branch is established.
No. No tax is paid upon premiums collected or received on account of reinsurance if the insured (for personal insurance) resides outside the Philippines, if any tax on such premiums is imposed by the foreign country where the original insurance has been issued or perfected.
No tax is paid on that portion of the premiums collected or received on variable contracts in excess of the amounts necessary to insure the lives of the variable contract owners.
Purely cooperative companies or associations are exempt. The law defines cooperative companies/associations as those conducted by members with money collected among themselves, solely for their own protection and not for profit.
The new 2% rate applies only to insurance policies issued after the effectivity of the Act. For policies taken out before effectivity but with premiums not yet fully paid, the 2% rate applies to the remaining balance and for the remaining years.
A one-time documentary stamp tax on all policies of insurance or other instruments whereby insurance is made or renewed upon one or more lives.
It is exempt.
Php 100.00.
Five (5) years after the effectivity of the Act (as stated), no tax on life insurance premium shall be collected; and on that date all life-insurance policies/instruments are exempt from documentary stamp tax.
It takes effect fifteen (15) days following completion of its publication in the Official Gazette or in a newspaper of general circulation in the Philippines.
The Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate the necessary rules and regulations.
If any provision is held unconstitutional or invalid, the remaining provisions not affected remain valid—important to preserve the law’s unaffected parts despite partial invalidity.
Yes. It repeals, amends, or modifies laws, decrees, executive orders, rules and regulations, or parts thereof inconsistent with the Act.