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EVAT  Implementation

In accordance with Expanded Value Added Tax (EVAT) Law under Republic Act 9337, pre-need companies were mandated to collect 10% VAT for all payments made by Planholders for their plans starting November 01, 2005 and the National Government was also given the option to increase this to 12% in 2006.

To allow our Planholder more time to adjust to the additional government tax, we will begin collecting this on February 15, 2006.


PLAN INSTALLMENT PAYMENTS

Prudentialife took on the cost of the additional EVAT when pre-need plans were subjected to 10% VAT beginning November 01, 2005. Only the additional 2% EVAT will be passed on to Planholders and it shall apply to the portion of the installment that is subject to VAT. It is approximately only 1.5% of the installment amount. An additional EVAT amount shall be computed for plan installments, at-need collections and Planholder's deposits paid on February 15 onwards.
For Plans with Contract Date after January 01, 1996 (VAT-Inclusive), the additional EVAT amount shall be equivalent to 1.5% of the amount being paid.


Sample Computation

Php 5,000.00 Regular Installment (RI)
5,000.00 X 1.5% EVAT = Php 75.00 EVAT
5,000.00 RI + 75.00 EVAT = Php 5,075.00
Php 5,075.00 = Total Amount Due

Php 1,000.00 Planholder's Deposit (PD)
1,000.00 X 1.5% EVAT = Php 15.00 EVAT
1,000.00 PD + 15.00 EVAT = Php 1,015.00
Php 1,015.00 = Total Amount Due
For Plans with Contract Date before January 01, 1996 (VAT-Exclusive), the additional EVAT amount shall be equivalent to 5.5% of the amount being paid. Previously, only 4% VAT was collected for these plans.

Sample Computation

Php 5,000.00 Regular Installment (RI)
5,000.00 X 5.5% EVAT = Php 275.00 EVAT
5,000.00 RI + 275.00 EVAT = Php 5,275.00
Php 5,275.00 = Total Amount Due

Php 1,000.00 Planholder's Deposit (PD)
1,000.00 X 5.5% EVAT = Php 55.00 EVAT
1,000.00 PD + 55.00 EVAT = Php 1,055.00
Php 1,055.00 = Total Amount Due


Any plan installment made without the corresponding EVAT amount constitutes an incomplete payment and shall be treated as Planholder's Deposit.

NO EVAT shall be imposed for fully plans prior to February 15, 2006.


PLAN-RELATED FEES / CHARGES

A 12%  EVAT amount shall be computed for penalties, penalty and interest on Pension Loans and other fees deemed to be subject to EVAT



For further inquiries, please email us at helpdesk@prudentialife.com or call Prudentialife Direct at (632) 864-8000.