Tax on insurance premiums.
SEC. 255. Tax on insurance premiums. — There shall be collected from every person, company, or corporation (except purely cooperative companies or association) doing insurance business of any sort in the Philippines a tax of one per centum of the total premiums collected during the first ten years of his or its operation and one and one-half per centum of the total premiums collected thereafter, whether such premiums are paid in money, notes, credits, or any substitute for money, but premiums refunded within six months after payment on account of rejection of risk or returned for other reason to persons insured shall not be included in the taxable receipts; nor shall any tax be paid upon reinsurance by a company that has already paid the tax.
"Cooperative companies or associations" are such as are conducted by the members thereof with money collected from among themselves and solely for their own protection and not for profit.
Time for payment of tax.
SEC. 256. Time for payment of tax. — Increase of tax in case of delinquency. — The tax on insurance companies shall be due on the first of July in each year for the preceding calendar year, and if the same remains unpaid for fifteen days thereafter the amount of the tax shall be increased by twenty-five per centum, the increment to be a part of the tax.
Yearly report from insurance company.
SEC. 257. Yearly report from insurance company. — Every company liable to the payment of the aforesaid tax shall, on or before the first day of April in each year, render a statement in writing, in such form as the Collector of Internal Revenue shall prescribe, containing an account of the conditions of its business during the calendar year last preceding, the entire amount of all premiums and other considerations received during such year, and such additional information as the Collector may require.
Tax due from agents of foreign insurance companies.
SEC. 258. Tax due from agents of foreign insurance companies. — Every fire, marine, or miscellaneous insurance agent authorized under section 192 of Act Numbered Two Thousand four hundred and twenty-seven, as amended by Acts Numbered Two thousand six hundred and forty-eight and Three thousand five hundred and seventy-five to procure policies of insurance as he may have previously been legally authorized to transact on risks located in the Philippines for companies not authorized to transact business in the Philippines, shall likewise make a yearly report to the Collector of Internal Revenue at the time and in the manner prescribed in section 257, showing the entire amount of all premiums received by the company he represents under the authority of the Insurance Law. And such agent shall pay to the Collector of Internal Revenue a tax equal to twice the tax imposed in section 255 which tax shall be paid at the same time and be subject to the same penalty for delinquency as the tax imposed by said section: Provided, however, That the provisions of this section shall not apply to reinsurance: And provided, further, That the prohibition of this section shall not affect the right of an owner of property to apply for and obtain for himself policies in foreign companies in cases where said owner does not make use of the services of any agent, company, or corporation residing or doing business in the Philippines. In all cases where owners of property obtain insurance directly with foreign companies, it shall be the duty of said owners to report to the Insurance Commissioner and to the Collector of Internal Revenue each case where insurance has been so effected, and shall pay the tax of one and one-half per centum on premiums paid, in the manner required by section 255 of insurance companies, and shall be subject to the same penalty for failure to do so.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
