Deductible of the Premiums Paid by a Corporation

March 31, 1960 BIR RULING NO. 163-60 Mr. Avelino L. Maglalang Sales Promotion Consultant Great Pacific Life Assurance Corporation 484 Rosario Street, Binondo M a n i l a S i r : In reply to your letter dated March 22, 1960, I have the honor to inform you as follows: Premiums paid by a corporation on any life insurance policy covering the life of any of its officers or employees with itself the beneficiary under such policy are not deductible from the gross income of the corporation. (Sec. 31(a) (4), Tax Code) If the beneficiary or beneficiaries under such insurance consist of the wife and/or children of the officer or employee, the premiums paid by the corporation are deductible. Such premiums shall however, constitute an additional income to the officer or employee. Such premiums are considered income to the insured officer or employee in the year they are paid. LLjur Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue