Proceeds of Life Insurance Policies Paid to Beneficiaries Upon the Death of the Insured
BIR Ruling No. 546-59 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 22, 1959
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October 22, 1959 BIR RULING NO. 546-59 Mr. Lim Suy An The Insular Life Assurance Co., Ltd. Cebu City S i r : With reference to your letter dated October 9, 1959, I have the honor to inform you that proceeds of life insurance policies paid to beneficiaries upon the death of the insured, whether in a single sum or otherwise, are not subject to income tax. However, if such proceeds are held by the insurer under an agreement to pay interest thereon, the interest payments are subject to tax. (Sec. 29 (b) (1) Tax Code.) aisadc Proceeds of life insurance policies which inure to the estate of the decedent under the provisions of section 88 (e) of the Tax Code are subject to the estate and inheritance taxes. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
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