Overview
- Congress approved the LIF 2026, which in Article 25, Section XIV makes VAT on third‑party claim reimbursements non‑creditable for insurers.
- AMIS says the change brings legal certainty for planning and product development, and policy prices will not rise immediately.
- AMIS adds insurers will pay more VAT starting in 2026 because they can no longer offset tax paid to hospitals and repair shops.
- Condusef and the IMEF caution that premiums could increase and claim processes could slow, with effects expected to surface in January 2026; Condusef will not process complaints about price hikes.
- The tax authority estimates 175–200 billion pesos in prior VAT were effectively forgiven, with the new criterion to be applied going forward beginning in 2025–2026.