This paper provides basic information on the country’s non-life insurance industry and its current tax treatment. It also presents the documentary stamp tax proposals under Package 4 of the Comprehensive Tax Reform Program that would help lower the cost of non-life insurance products to help increase insurance penetration in the country.
Non-life insurance remains an essential part of present-day life. The industry remains resilient despite the challenges it faced during the COVID-19 pandemic. The pandemic highlighted the importance of insurance, especially for the vulnerable and low-income populations. As Filipinos become more aware of the importance of having insurance during the pandemic to help rebuild their lives, Package 4 provides needed tax relief on non-life insurance to encourage them to patronize these products and help them live life knowing that they have financial security. The proposal to equate the differentiated documentary stamp tax rates imposed on non-life insurance products is expected to increase the accessibility of said financial products by making them more affordable for everyone. This will also make tax compliance and administration much simpler, which will result in significant progress in the non-life insurance industry.