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Republic Act

Republic Act No. 1867

An act to place life insurance companies on an new income tax basis by amending sections twenty-four and thirty-two of commonwealth act numbered four hundred and sixty-six, otherwise known as the national internal revenue code, as amended.

AN ACT TO PLACE LIFE INSURANCE COMPANIES ON AN NEW INCOME TAX BASIS BY AMENDING SECTIONS TWENTY-FOUR AND THIRTY-TWO OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.

In plain language

Republic Act No. 1855 amends Sections 24 and 32 of the National Internal Revenue Code to impose new income‑tax rates on life insurance companies and adjust corporate tax rates, thereby placing life insurance firms on a distinct tax basis and clarifying deductions and special provisions for insurance entities.

  • Amendment of Sec. 24 to impose 20% and 28% tax rates on corporations and a 6.5% rate on life insurance companies
  • Establishment of special deductions for insurance companies in Sec. 32
  • Clarification of tax treatment for dividends and foreign life insurance companies
  • Provision for tax rates on mutual insurance companies
Tax Law
Insurance
Revenue
Income Tax
Philippines

REPUBLIC ACT No. 1867

An Act Appropriating the Sum of Six Million Pesos Annually for Five Years and Authorizing the Allocation of Twelve Million Pesos of Reparations from Japan Annually for Four Years for the Extension by the Manila Railroad Company of its Lines from the Municipality of San Jose, Province of Nueva Ecija, to the Municipality of Tuguegarao, Province of Cagayan

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

WHEREAS, by Republic Act Numbered Four hundred seventy, entitled "An Act to authorize the Manila Railroad Company to incur an indebtedness of forty-five million pesos for the rehabilitation, restoration and extension of its lines," approved June nine, nineteen hundred and fifty, Congress has authorized the Manila Railroad Company to extend its lines from San Jose, Nueva Ecija, to Aparri, Cagayan;

WHEREAS, the Manila Railroad Company is not in a financial position to undertake the extension of its lines to Cagayan Valley nor is it able to obtain sufficient loans under said Act; and

WHEREAS, it has been a declared policy of the Government that the Manila Railroad Company extend its lines to the Cagayan Valley within a period of five years; Now, therefore:

Section 1

The sum of six million pesos is hereby appropriated annually for a period of five years, beginning with the fiscal year nineteen hundred and fifty-seven nineteen hundred and fifty-eight, out of any funds in the National Treasury not otherwise appropriated, for the extension by the Manila Railroad company of its lines from the Municipality of San Jose, Nueva Ecija, to the Municipality of Tuguegarao, Province of Cagayan.

Section 2

The amount made available for expenditure for each fiscal year under the provisions of this Act shall be converted into subscription by the Government in the capital stock of the Manila Railroad Company.

Section 3

To enable it to carry out the objectives of this Act and to meet its requirements, the Manila Railroad Company is hereby authorized to receive an annual allocation of twelve million pesos of reparations from Japan for a period of four years from the date of approval of this Act.

Section 4

This Act shall take effect upon its approval.

Approved: June 22, 1957.

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.