REDUCING TAXES ON LIFE INSURANCE POLICIES
What is this law about?
This law reduced the tax on life insurance premiums from 5% to just 2%.
Important Things to remember:
1. The new rate applies to insurance policies issued starting January 2010.
2. The new rate also applies to existing insurance policies still with unpaid premiums.
3. The law also updated the rates for documentary stamp tax (DST) over insurance policies. They are:
If the amount of insurance does not exceed Php 100,000.00 | Exempt |
| If the amount of insurance exceeds Php 100,000 but does not exceed Php 300,000 | Php 10.00 |
| If the amount of insurance exceeds Php 300,000.00 but does not exceed Php 500,000.00 | Php 25.00 |
| If the amount of insurance exceeds Php 500,000.00 but does not exceed Php 750,000.00 | Php 50.00 |
| If the amount of insurance exceeds Php 750,000.00 but does not exceed Php 1,000,000.00 | Php 75.00 |
| If the amount of insurance exceeds Php 1,000,000.00 | Php 100.00 |
4. And by January 2015, no tax will be collected over life insurance premiums.
Complete text of the law can be found at:
RA 10001 found in the Official Gazette
Thanks! I've been constantly looking for sites to simplify some laws to better help the public.
ReplyDelete