I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
You might find this interesting. RA 10001 has set a new rate on the tax
on life insurance policies, including their documentary stamp taxes.
Life insurance premiums tax has been lowered from 5% to 2% on the total
premiums collected from life insurance businesses. This 2% rate is not
retroactive and will apply only to those insurance policies issued after RA
10001's date of effectivity (February 23, 2010.) In case a policy was taken
before February 23, 2010, but the premiums weren't fully paid, the 2% rate will
cover the remaining balance for the remaining years. Cooperatives are exempt
from this tax.
The following transactions will not be included in the taxable receipts:
1.) Premiums refunded within 6 months from date of payment due to rejection
of risk (or other reasons) to a person who is insured
2.) In a contract of reinsurance if the company has already paid the tax
3.) Premiums collected or received by any branch of a domestic corporation,
association or firm doing business outside the Philippines on account of a
nonresident insured if the foreign country where branch in question is located
imposes taxes on the premiums
4.) On the portion of premiums collected or received by the insurance
companies on variable contracts, in excess of the necessary amounts to insure the
lives of variable contract owners
And it gets better! Under sec. 4 of this law, beginning 2015, no tax
on life insurance premiums will be collected. Also,they will be exempt from
documentary stamp tax! (Oh yeah!)
The rates of documentary stamp tax on insurance policies (which will
thankfully be abolished on 2015) are as follows:
If the insurance amount is
Not more than Php100,000.00 = exempt
More than Php100,000.00 but less than Php300,000.00 = Php10.00
More than Php300,000.00 but less than Php500,000.00 = Php25.00
More than Php500,000.00 but less than Php750,000.00 = Php50.00
More than Php750,000.00 but less than Php1 Million = Php75.00
More than Php1 Million = Php100.00
So there you have it: on more reason to take on life insurance.
2 comments:
By the way if you need insurance just contact me through my FB account. www.facebook.com/emmanlijesta
Thanks for the heads-up!
Small Business Tax
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