Non-taxability of Premiums Paid on Personal Accident Coverage

August 25, 1958 BIR RULING NO . 483-58 Messrs. Fleming & Williamson Certified Public Accountants P. O. Box 214, Manila Gentlemen : Reference is made to your letter dated April 4, 1957, stating that your client, Filipro, Inc., is a resident foreign corporation whose insurance requirements are arranged by its parent organization, the Worldwide Nestle' organization. You now request confirmation of your opinion to the effect that premiums paid in respect of Personal Accident insurance taken directly with a foreign insurance company are not subject to premium tax. In reply thereto, I have the honor to inform you that only owners of property obtaining insurance directly with a foreign insurance company are subject to the 5% premium tax under the proviso contained in Section 258 of the Tax Code. As regards premiums paid in respect of Personal Accident Insurance taken directly with a foreign insurance company not engaged in trade or business in the Philippines and not having an office or place of business therein, this Office is of the opinion that the aforesaid premiums are not subject to either the premium tax prescribed under Section 258 of the Tax Code or under Section 255 thereof. Accordingly, premiums paid by your client on Personal Accident coverage are not subject to premium tax, there being no specific provision of law taxing the same. Very respectfully, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue