Section 2
SEC. 2. Section thirty-two of the National Internal Revenue Code, as amended, is here by further amended read as follows: "SEC. 32. Special provisions regarding income and deductions of insurance companies, whether domestic or foreign.—(a) Special deductions allowed, to insurance companies.—In the case of insurance companies, except domestic life insurance companies and foreign life insurance companies doing business in the Philippines, the net additions, if any, required by law to be made within the year to reserve funds and the sums other than dividends paid within the year on policy and annuity contracts may be deducted from their gross income: Provided, however, That the released reserved be treated as income for year of release. "(b) Mutual insurance companies.—In the case mutual fire and mutual employers liability and mutual workmen's compensation and mutual casualty insurance companies requiring their members to make premium deposits to provide for losses and expenses, said companies shall not return as income any portion of the premium deposits returned to their policy-holders, but shall return as taxable income all income received by them from all other sources plus such portion of the premium deposits as are retained by the companies for purposes other than the payment of losses and expenses and re-insurance reserve. "(c) Mutual marine insurance companies.—Mutual marine insurance companies shall include in their return of income gross premiums collected and received by them less amounts paid for re-insurance, but shall be entitled to include in deductions from gross income amounts repaid to policy-holders on account of premiums previously paid by them, and interest paid upon such mounts between the ascertainment thereof and the payment thereof. "(d) Assessment insurance companies.—In the case of assessment insurance companies, whether domestic or foreign, the actual deposit of sums with the officers of the Government of the Philippines pursuant to law, as additions to guarantee or reserve funds, shall be treated as payments required by law to reserve funds."