BIR Ruling

August 29, 1968 Trust Insurance Corporation 7th Floor Madrigal Building Ayala Avenue, Makati, Rizal Attention: Mr . Joy A . Tesoro Accountant Gentlemen : In reply to your letter dated December 12, 1967, I have the honor to inform you that reinsurance premium ceded to foreign non-authorized insurance companies are not subject to premium tax pursuant to Section 258 of the Tax Code, the pertinent portion of which is quoted hereunder as follows: "Section 258. Tax due from agents of foreign insurance companies . Every fire, marine, or miscellaneous insurance agent authorized under section one 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 business in the Philippines, shall likewise make a yearly report to the Commissioner 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 Commissioner 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 : . . ."(Emphasis supplied) Your other queries are vague and, therefore, cannot be properly answered. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue