Insurance intermediaries challenge the mandatory withholding tax on remuneration paid to third parties

In a press release, the National Federation of Insurance Agents and Brokers in Morocco (FNACAM) said it was challenged by the provision relating to withholding tax on fees, commissions, brokerage and other similar remuneration “in the draft finance law for the year 2023. This deduction is now set for companies at 10% after having been proposed at 20%.

“After analyzing this provision, it would seem that insurance intermediaries (general agents and insurance brokers) are concerned by the device of this withholding tax of the IS, while their income is declared by the insurance companies. insurance to the DGI and the ACAPS”, indicates the same source.

“Given the difficulties that our profession is experiencing today, which has always advocated tax fairness and transparency, and given the heavy burdens incumbent on insurance intermediaries, the vast majority of them do not generate a taxable profit. up to 10% of their turnover”, continues the FNACAM.

“Also, at a time when our profession was rather expecting the abolition of the unjustified taxation of its commissions at a VAT rate of 14% without the right to deduct, FNACAM, on behalf of the profession, can only protest energetically against this arrangement disconnected from the reality of our activity”.

The FNACAM therefore calls for the withdrawal of this measure which “will only weaken most agents and insurance brokers”, concludes the press release.

November 14, 2022 at 1:40 p.m.

Modified November 14, 2022 at 2:04 p.m.

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