What is the premium tax on fire insurance paid to a non-resident foreign insurance company through an agent…

Question

What is the premium tax on fire insurance paid to a non-resident foreign insurance company through an agent in the Philippines?

ScanSolve AI Tutor · Accepted Answer

Step 1: Identify the premium amount and the nature of the insurance company. Paeng paid premiums amounting to P200,000 for fire insurance. The insurance was procured from ABC Insurance Co., which is a non-resident foreign corporation, through its agent in the Philippines, Mr. Jones. Step 2: Determine the applicable tax rate for premiums paid to a non-resident foreign insurance company through an agent. Under Philippine tax law, premiums paid to a non-resident foreign insurance company through an agent in the Philippines are subject to a premium tax of 12%. Step 3: Calculate the premium tax. Premium Tax = Premium Amount × Tax Rate; Premium Tax = P200,000 × 12%; Premium Tax = P200,000 × 0.12; Premium Tax = P24,000 The calculated premium tax is P24,000. This corresponds to option A. The final answer is A. 24,000.

What is the premium tax on fire insurance paid to a non-resident foreign insurance company through an agent in the Philippines?

Answer

Step-by-step solution

Identify the premium amount and the nature of the insurance company.

Determine the applicable tax rate for premiums paid to a non-resident foreign insurance company through an agent.

Calculate the premium tax.

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