The National Association of Insurance Agents and Brokers of Morocco (FNACAM) reacted on Monday to the provision regarding “retention at source of fees, commissions, brokerage and other remuneration of the same nature”, within the framework of the Finance Law for 2023. ” After the publication of Finance Act for 2023, we were invited [cette] provision (…), which is now set for companies at 10% after being proposed at 20%”, the NGO states in a press release.
Thus, “after analyzing this provision, it seems that insurance intermediaries (general agents and insurance brokers) are concerned about the system of this withholding tax at source, while their income is indicated by the company’s insurance to DGI and ACAPS”, she says.
For FNACM “the profession as insurance intermediaries is the essential link for the presentation of insurance transactions for companies and individuals”. “They are also the main collectors of insurance premiums and taxes on behalf of insurance companies and the state,” she emphasizes.
The federation confirms that in light of the “difficulties experienced today by the profession, which has always advocated tax fairness and transparency, and given the heavy burdens placed on insurance intermediaries, the vast majority of them do not generate a taxable profit of up to 10% of their turnover”. Also “at a time when the profession rather expected the abolition of the unjustified taxation of its commissions with a VAT rate of 14% without the right of deduction, FNACAM, on behalf of our profession, can only protest energetically against this arrangement disconnected from the reality of our activity”, she adds.
Morocco’s insurance agents and brokers therefore call on “the sense of responsibility of decision-makers to withdraw this measure, which will only weaken most insurance agents and brokers and will accelerate the insurance sector in our country ahead of “an unprecedented crisis, even an irreparable failure of its main distribution channel «.