Application of the New Tax Rate
- The 2% tax rate applies only to life insurance policies issued after the law's effectivity.
- For policies issued before effectivity but with unpaid premiums, the 2% rate applies to the remaining balance and years.
Documentary Stamp Tax on Life Insurance Policies
- One-time documentary stamp tax imposed on insurance policies based on the amount insured:
- Php 100,000 and below: Exempt
- Over Php 100,000 up to Php 300,000: Php 10
- Over Php 300,000 up to Php 500,000: Php 25
- Over Php 500,000 up to Php 750,000: Php 50
- Over Php 750,000 up to Php 1,000,000: Php 75
- Over Php 1,000,000: Php 100
Future Exemption of Life Insurance Taxes
- Five years after the law's effectivity, no tax on life insurance premiums shall be collected.
- Concurrently, all life insurance policies shall become exempt from documentary stamp tax.
Implementation Rules and Regulations
- The Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, shall promulgate rules and regulations implementing the Act.
Separability Clause
- If any provision is found unconstitutional or invalid, other provisions remain effective and valid.
Repealing Clause
- All laws, decrees, executive orders, rules, and regulations inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity
- The Act takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation in the Philippines.