Philippines: General insurance Commercial accounts/ tax and regulatory returns Accounting Tax return Not applicable. Percentage tax rates range from 1% to 30% based on gross sales or receipts, depending on the nature of your business. Bancassurance refers to the presentation and sale to bank customers by an insurance company of its insurance products within the premises of the head office of a bank duly licensed by the BSP or any of its branches, under such rules and regulations as the Insurance Commissioner and the BSP may promulgate. However, the bank and the insurance company must belong to the same financial conglomerate, or a group of interrelated entities providing significant services in at least two different financial sectors, pursuant to BSP regulations. When introduced in 1994, the tax was just 2.4% 1. However, in several BIR rulings, the earliest of which was issued in 2003, the BIR affirmed that group insurance premiums costs are not also subject to income tax/withholding tax on compensation (BIR Ruling DA-081-03; BIR Ruling DA-374-08). However, by way of exception, the court ruled that medical insurance premium expenses may be deemed a de minimis benefit exempt from FBT, income tax, and withholding tax on compensation, provided that the following conditions are satisfied: 1. No official or employee of an insurance brokerage or an adjustment company, and no individual adjuster, shall be licensed to act as an insurance agent or general agent. In order for a local insurer to have its insurance risks reinsured by a foreign reinsurer, there is a requirement that at least 10% of the outward reinsurance placed with unauthorised foreign reinsurers must be offered for cession to the National Reinsurance Corporation of the Philippines (NRCP). However, there is one particular question which seems to have left tax practitioners with more questions than answers, and this is the tax treatment of premiums related to employee group health insurance. In other cases there will be not tax collection. The Civil Code of the Philippines provides that “[t]he contract of insurance is governed by special laws. State Premium Tax. After the Supreme Court renders a decision, the aggrieved party is given 15 days from receipt thereof to file a motion for reconsideration. Insurers who have Industrial Insurance Premiums to report will need to use the Industrial Insurance Returns. Failure to abide by and comply with these fiduciary obligations is grounds for the denial, suspension, or revocation of the licence of an insurance agent or insurance broker. No 1146, as amended) (for government employees); ii) Social Security Act of 1954 (R.A. No 1161, as amended) (for employees of private entities); (iii) the Property Insurance Law (R.A. No 656, as amended); and (iv) R.A. No. For example, life insurance agents pay a 2% percentage tax on the total premiums collected. (* Premiums refer to the monthly or annual fees youpay tohave insurance .) The PIC has not issued any specific regulation or guideline with respect to cyber-risks. Any insurer which delivers to an insurance agent or insurance broker a policy or contract shall be deemed to have authorised that agent or broker to receive on its behalf payment of any premium which is due on that policy or contract of insurance. Domestic corporations are subject to ordinary corporate income tax (OCIT) of 30% on their taxable income (ie, gross income less allowable deductions) or minimum corporate income tax (MCIT) of 2% on their gross income, whichever is higher. The inclusion of the following terms in a policy of insurance are essential and are required by the Code, in addition to any other provisions required by further regulations issued by the Insurance Commissioner: The rules are the same even if there are multiple insureds or potential beneficiaries under the contract. Similarly, any warranty issued after the original policy should be countersigned by the insured or owner, except if it is applied for by the insured or owner. The tax exemption for group insurance premiums is clearly laid down under Section 2.33 (C) of Revenue Regulation (RR) No. the amount to be insured except in the cases of open or running policies; the premium, or a statement of the basis and rates upon which the final premium is to be paid in certain instances; the interest of the insured in the property insured, if he or she is not the absolute owner thereof; the period during which the insurance is to continue. 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