Overview

• LIF 2026 modifies Article 25 to bar insurers from crediting VAT on goods and services used to fulfill claims, and it requires prospective payment under the new criterion starting in 2025.
• The law offers a fiscal stimulus for past VAT credits if companies correct their tax position by March 31, 2026 after dropping ongoing lawsuits.
• The tax authority had identified roughly 175 billion pesos in unpaid VAT across the sector, and press reports indicate insurers would pay about 20 billion pesos in installments during 2026 under the agreement.
• Access to the stimulus is denied to firms with fiscal crime convictions, those listed as invoice shell companies, or those with canceled e‑invoicing certificates.
• AXA remains in dispute with the government in domestic courts and at ICSID over VAT treatment, and the company has not said whether it will opt into the stimulus.