BIR Ruling

December 26, 1973 Mr. Dominador G. Dacanay Proprietor, Peerless Insurance Company Rm. A 5th Floor, Feati Bank Building E. de los Santos Avenue, Mandaluyong Rizal S i r : In reply to your letter dated November 10, 1973, I have the honor to inform you that as agent of a foreign reinsurance company, you are subject to the 6% premium tax on the entire amount of all premiums received on insurance risks covered by said foreign reinsurance company as provided under Section 258 in relation to Section 255, both of the Tax Code, as amended. However, provisions of the said section do not apply to reinsurance. As agent of the foreign reinsurance company, you are required to pay the 6% premium tax on the 1st of July in each year for the preceding calendar year, and if the same remain 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. (Section 256, Tax Code, as amended.) cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5