REPUBLIC ACT NO. 1504 - AN ACT TO
AMEND CERTAIN SECTION OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND
SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED |
Section 1.
Section two hundred fifty-five of Commonwealth Act Numbered four
hundred sixty-six, as amended, is hereby further amended to read as
follows: "Sec. 255.
Taxes on insurance premiums. – There shall be collected from every
person, company, or corporation (except purely cooperative companies or
associations) doing insurance business of any sort in the Philippines a
tax of three per centum of the total premiums collected, 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 person 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; nor
upon premiums collected or received by any branch of a domestic
corporation, firm or association doing business outside the Philippines
on account of any life insurance of the insured who is a non-resident,
if any percentage tax on such premiums is imposed by the foreign
country where the branch is established. "Cooperative companies or
associations are such as are conducted by the members thereof with the
money collected from among themselves and solely for their own
protection and not for profit: Provided, however, That domestic
insurance companies suffering from impairment of capital shall be
exempted from the provisions of this section for a period of four years
from the passage of this amendatory Act: And provided, finally, That
domestic insurance companies organized after the passage of this
amendatory provision shall pay one per centum of the total premium
collected within the first five years after their organization and
three per centum of the premium collected thereafter. The words
"insurance companies suffering from impairment of capital" as used in
this Act shall be construed to mean, those still owing fifty percent or
more of their indebtedness as a result of the last war." Sec. 2. Section two hundred fifty-eight of Commonwealth Act Numbered Four hundred sixty-six, as amended, is hereby further amended to read as follows: "Sec. 258.
Tax due from agents of foreign insurance companies. – Every fire,
marine, or miscellaneous insurance agent authorized under section one
hundred ninety-two 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 two hundred fifty-seven, 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 two hundred fifty-five 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
prohibitions 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 five per centum on premiums paid, in the manner required by
section two hundred and fifty-five of insurance companies, and shall be
subject to the same penalty for failure to do so." Sec. 3. This Act shall take effect upon its approval.cralaw Approved: June 16, 1956 |