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Act
Approved August 11, 1950

Republic Act No. 564

An act to amend section two hundred and fifty-eight of commonwealth act numbered four hundred and sixty-six, otherwise known as the national internal revenue code.

AN ACT TO AMEND SECTION TWO HUNDRED AND FIFTY-EIGHT OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE.

In plain language

Amends Section 258 of the National Internal Revenue Code to impose a tax on foreign insurance agents, establish reporting requirements, provide exemptions for reinsurance and direct purchases, and enforce penalties for non‑compliance.

  • Tax imposed on foreign insurance agents equals twice the tax in Section 255.
  • Agents must file annual reports to the Collector of Internal Revenue.
  • Reinsurance activities are exempt from the tax.
  • Owners purchasing directly from foreign insurers must report to the Insurance Commissioner and Collector and pay a 3% tax on premiums.
  • Non‑payment is subject to penalties identical to those in Section 255.
taxation
insurance
revenue
Philippines
RA 564

[ REPUBLIC ACT NO. 564, August 11, 1950 ]

AN ACT TO AMEND SECTION TWO HUNDRED AND FIFTY-EIGHT OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Section two hundred and fifty-eight of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows:

"Section 258.Tax due from agents of foreign insurance companies. - Every fire, marine, or miscellaneous insurance agent authorized under section one hundred ninety-two of Act Numbered Two thousand four hundred and twenty-seven, as amended by Acts Numbered Two thousand six hundred and forty-eight and Three thousand five hundred and seventy-five to procure policies of insurance as he may have previously been legally authorized to transact on risks located in the Philippines for companies not authorized to transact business in the Philippines, shall likewise make a yearly report to the Collector of Internal Revenue At the time and in the manner prescribed in section two hundred fifty-seven, showing the entire amount of all premiums received by the company he represents under the authority of the Insurance Law. And such agent shall pay to the Collector of Internal Revenue a tax equal to twice the tax imposed in section two hundred fifty-five which tax shall be paid at the same time and be subject to the same penalty for delinquency as the tax imposed by said section;*Provided,* however,That the provisions of this section shall not apply to reinsurance:And provided, further,That the prohibitions of this section shall not affect the right of an owner of property to apply for and obtain for himself policies in foreign companies in cases where said owner does not make use of the services of any agent, company, or corporation residing or doing business in the Philippines. In all cases where owners of property obtain insurance directly with foreign companies, it shall be the duty of said owners to report to the Insurance Commissioner and to the Collector of Internal Revenue each case where insurance has been so effected, and shall pay the tax of threeper centumon premiums paid, in the manner required by section two hundred and fifty-five of insurance companies, and shall be subject to the same penalty for failure to do so."

Section 2

This Act shall take effect upon its approval.

Approved, August 11, 1950.

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.