LATEST PUBLICATIONS
WP-2012-07
Regulatory Impact Assessment Adoption Determinants: A Diagnostic Framework
WP-2012-06
Exploring Responses to the Employment Impact of Excise Tax Reform: The Case of the Philippine Tobacco Industry
WP-2012-05
Mapping Out Employment Opportunities in the Cultural Heritage Sector A Strategic Framework
WP-2012-04
Enhancing Decent Work Outcomes in Small-Scale Gold Mining

LATEST AV MATERIALS
PIDS WB 2021-0904
Annual Public Policy Conference Webinar 3: Green And Inclusive Recovery
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
PIDS WB 2021-0901
19th Development Policy Research Month Kick-Off Forum
Publication Detail
TRJ 2009 Vol XXI No 4-a: Tax Treatment of Life and Non-Life Insurance in the ASEAN Countries, July - August 2009

Among ASEAN countries, the Philippines imposes a 5% premium tax on life insurance while Malaysia imposes a 5% service tax. On the other hand, Cambodia imposes a minimal rate of 0.5% for insurance or reinsurance of risk received, while Thailand subjects life insurance to a specific business tax (SBT) of 2.5% Singapore treats life insurance and reinsurance premiums as either goods or services tax (GST) exempt or zero-rated. In Indonesia, insurance services are non-taxable services while Vietnam treats life insurance as exempt from the VAT. The Philippines imposes a Documentary Stamp Tax (DST) on life insurance at an ad valorem rate of 0.25% while Malaysia imposes a Stamp Duty of RM10 on insurance policy except life policy where the sum insured does not exceed RM5,000. Thailand also imposes a fixed stamp duty on reinsurance policies. Singapore does not impose stamp duty on insurance policies. In addition to these taxes, the Philippines and Thailand are the only countries imposing a municipal tax of 0.2% and 10%, respectively. On the other hand, non-life insurance in the Philippines is subject to the 12% VAT, while Thailand imposes a VAT at a reduced rate of 7% from the current 10% VAT extended until October 1, 2010 based on total premiums collected. Meanwhile, Singapore subjects non-life insurance to a 5% GST which is also based on premium, while international marine and aviation insurance, travel insurance and export credit insurance are deemed zero-rated for GST purposes. A 5% service tax is imposed on all types of insurance policies in Malaysia. With regard to DST/stamp duty, the Philippines imposes a 12.5% rate compared to Thailand’s 0.5% and a fixed stamp duty of Baht1.00 on reinsurance policies while Malaysia imposes a stamp duty at a rate of RM10. The same ratio of municipal tax on non-life insurance is imposed by the Philippines and Thailand.

National Tax Research Center
Authors Keywords
National Tax Research Center; ASEAN; taxation; Philippines; tax; life insurance tax; tax treatment;
Download PDF Number of Downloads
Published in 2009 and available in the NTRC library or Downloaded 241 times since November 25, 2011
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.