Prior to the Omnibus Law:
Payments from insurance companies to individuals in connection with health insurance, accident insurance, life insurance, endowment insurance, and scholarship insurance are excluded from the tax object
After the Omnibus Law:
Payments from insurance companies to individuals due to accidents, illness or death of the insured person, and scholarship insurance payments are excluded from the tax object
What has been changed?
There is a change in vocabulary in the mention of the types of insurance that are excluded.
From what previously looked general, such as: payments in connection with health insurance, accident, life, endowment and scholarships
changes to: payments due to accident, illness or death of the insured person, and scholarship insurance payments
If we see, in the past the exception was in the insurance product itself, such as health insurance, accident, life and so on. But now, the exception is more specifically for certain events, namely accidents, illness or death.
why is this done?
This was changed because over time, insurance products became more innovative, there were types of insurance with properties that resembled financial products that paid interest and were given in the form of insurance claims. And because the product is issued by an insurance company and is named health insurance or education insurance, then the periodic premium payments are not deducted from taxes. In contrast to deposits, which obviously have to be deducted by 20% tax.
This certainly does not provide an equal level playing field between banks and insurance companies.
Therefore, in the new Omnibus Law, this has now been changed. So, if there are people who now receive payment of claims, but not in connection with an accident, illness or death of a person, then the payment of the insurance claim may be subject to tax.