Increasing the corporate tax rate (IS), taxation by withholding at source or even rationalizing certain tax benefits in favor of employees of insurance companies with the status of Casablanca Finance City (CFC), in particular, are among the measures proposed in this bill. next year.
In a statement to MAP, Abdelbasset Mohandis, Certified Public Accountant (CPA), Statutory Auditor, stated that PLF 2023 proposes to increase the IS rate from 37% applicable to insurance and reinsurance companies to 40% according to a schedule extending up to 2026.
Returning to the flagship news regarding redemption of contributions and premiums in relation to individual or group pension insurance contracts, Mr. Mohandis noted that PLF-2023 provides that taxation in the form of income tax will be applied in the form of withholding at source on non- – discharge rate of 30%, instead of the current progressive scale rates.
In this sense, the expert recalled that in order for them to be exempt from income tax, the contributions relating to retirement savings must meet certain conditions, namely: the pension insurance agreement must have a duration of at least 8 years and the benefit must be paid to the beneficiary from the age of 50. year.
Regarding the exclusion of employees of banks and insurance companies with CFC status from the specific rate of 20%, Mr. Mohandis recalled in this regard that the gross wages paid to employees working on behalf of companies with CFC status , is required to pay income tax at the specific rate of 20% for a period not exceeding 10 years from the date of accession.
And to continue in this context that PLF-2023 proposes exclusion of insurance and reinsurance companies and insurance and reinsurance brokerage companies from the benefits of this benefit, he noted in this regard.
Insurance sector: results confirmed in 2022
Since the beginning of 2022, the insurance sector has been able to recover and return to its growth rate before the health crisis.
Thus, the amount of direct issuance increased by 6.2% in the 1st half of the year to 29.5 billion dirhams (MMDH), according to statistics from the Insurance and Social Welfare Control Authority (ACAPS).
This growth is supported by the development, albeit at different rates, of the two lines of insurance, life and non-life.
Non-life insurance thus increased by 5.9%, i.e. an increase above its 5-year average (+5%), at a time when life insurance saw its growth rate fall by 6.5% % below the 5-year average (+8.9%).
Another index in the green is the net profit of the insurance sector, which amounted to 2.8 billion dirhams in the first half of 2022, an increase of 19.2% compared to a year earlier, that is, the highest level bred in 5 years.
The sector was also able to maintain its momentum in the third quarter of 2022, as premiums issued by insurance and reinsurance companies exceeded 12.4 billion dirhams in the same period, representing an increase of 11.5% compared to a year earlier.