Rate of Tax Payable by the Cosmopolitan Insurance Co., Inc.

April 27, 1959 BIR RULING NO. 211-59 Mr. Norberto Robleza 406 Nueva Street Dasmarias, Manila S i r : In reply to your letter dated April 23, 1959 requesting a clarification on the rate of tax payable by the Cosmopolitan Insurance Co., Inc. on premiums ceded by it to the Universal Insurance & Indemnity Corporation and the Filipinas Compaia de Seguros under reinsurance agreement, I have the honor to inform you that the Cosmopolitan Insurance Co., Inc. may pay the premium tax thereon at the rate applicable to it. However, if the insurance companies to whom the premiums were ceded are paying higher rates of tax than the ceding company, the former are liable to the premium tax on the premiums ceded to the extent of the difference between the rate being paid by them and the ceding company. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue