Whether Premium Payments to Insurance Brokers Are Subject to Withholding Tax
BIR Ruling No. 003-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jan 8, 1986
Full text
January 8, 1986 BIR RULING NO. 003-86 53-f 167-85 003-86 Gentlemen : This refers to your letter dated September 28, 1985, requesting clarification as to whether or not premium payments to insurance brokers are subject to withholding tax. In reply, please be informed that under Section 1 (g) of Revenue Regulations No. 8-85 implementing Section 53(f) of the Tax Code, otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations, gross payments to insurance brokers are subject to the 5% expanded withholding tax. For purposes of the said expanded withholding tax, the basis shall be the whole commission or compensation received by the insurance broker excluding insurance premium which are payments due to the insurance company . cdt Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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