Tax Liability of Insurance Company and Its Branches

January 19, 1959 BIR RULING NO. 028-59 Menzi & Co., Inc. Thru The Insurance Commissioner Manila Attention : Manager, Legal Dept . Gentlemen : This is with reference to your letter dated December 8, 1958 requesting information as to the liability of that company and its branches to occupation tax as insurance agents. LLpr In reply, I have the honor to inform you that, as stated in B.I.R. Rulings 105.08 dated June 19, 1953 and 155.5091 dated May 24, 1955, a corporation acting as general agent of an insurance company is not subject to the insurance agent's occupation tax, the tax on occupation being personal and imposed only on natural persons. The persons employed by the corporation, whether on commission or salary basis, to solicit or procure applications for insurance are the one's subject to the insurance agent's fixed tax in their individual capacity. Accordingly, that company and its branches are not subject to the occupation tax. prll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue