Correction of Section 3-C of Revenue Regulations No. 20-86 or the Revised Regulations Amending Republic Act No. 1051

January 14, 1987 REVENUE MEMORANDUM CIRCULAR NO. 02-87 SUBJECT : Correction of Section 3-C of Revenue Regulations No. 20-86 or the Revised Regulations Amending Republic Act No. 1051 TO : All Internal Revenue Officers and Others Concerned Under Section 223 of the NIRC, as amended by PD 1994, there shall be collected from every person, company or corporation (except purely cooperative companies or associations) doing insurance business of any sort in the Philippines a tax of five (5%) per centum of the gross premium collection. However, the rate of six (6%) per centum was inadvertently stated in Section 3 C of Revenue Regulations No. 20-86 reading as follows: "Section 3. Internal revenue taxes required to be withheld . The following taxes, the amount of which can be fixed, determined, computed or ascertained are subject to withholding: xxx xxx xxx C. Premium Tax . Six per centum (6%) of premiums paid to any person doing insurance business of any sort . . ." Accordingly, the above quoted provision of Revenue Regulations No. 20-86 should be corrected and the rate imposed by Section 223 of the NIRC, as amended by PD 1994 be made to prevail. (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue