Listed companies have never made so much money. In 2021, their profits amounted to 28.9 billion DH, including 4.9 billion for the banking sector, according to calculations made by Attijari Global Research.
At the tax office in Rabat, we are rubbing our hands because the prosperity of these companies, which are also major contributors to budget revenue, means more money coming into the coffers of the State, which has more than ever. need. But this could push the tax administration to adjust its control program by multiplying “opportunity operations” in order to optimize the performance and productivity of the teams.
The traditional providers of tax revenue should therefore expect to be placed in the program of tax inspectors: banks, telecom operators and insurance companies are at the top of the bill.
According to information from our partners Les inspirations ECO, Bank of Africa and AtlantaSanad Assurance are in the schedule of tax audits scheduled for this month of April. AtlantaSanad could be only the first of a long list to come in the insurance sector, one of the priorities of the tax administration for this exercise. The insurer remains on an excellent year 2021 with a net result of 455 million dirhams, up 4.1% after two previous equally flourishing financial years despite the health crisis.
As for the sector, this crisis is now an old memory. In the control operations that target insurance companies, the old dispute concerning the tax on insurance contracts should still fuel the heads of tax adjustments. Insurers have been pleading for years that the liability for this tax should be based on the collection of premiums and that, on policies terminated before expiry, the tax should only be due in proportion to the actual and not theoretical duration of the contract.
According to tax legislation, “insurance contracts entered into by insurance and reinsurance companies as well as all acts having as their sole purpose the formation, modification or amicable termination of said contracts are subject to a tax on insurance contracts. ‘insurance’. All the companies have accumulated arrears of payment of the tax on insurance contracts to the tax authorities, not out of bad faith, but because of differences on the chargeable event of the tax.
An old sea serpent, the insurance tax
The rate of tax on insurance contracts is set as follows:
Ship hull insurance operations and insurance operations against civil liability risks resulting from the use of river and maritime vehicles are subject to the 7% rate, including the carrier’s liability and the defense and appeal.
Temporary insurance operations in the event of death taken out for the benefit of lending organizations are subject to the rate of 10%.
Are subject to tax at the rate of 14%:
• insurance operations against credit risks and financing risks of participating banks, including insurance operations against civil liability risks subject to the same technical rules – insurance operations for the bodies of land vehicles and insurance operations against the risks of civil liability resulting from the use of motorized land vehicles, including carrier liability and defense and recourse;
• aircraft hull insurance operations and insurance operations against civil liability risks resulting from the use of aircraft, including carrier liability and defense and recourse;
• assistance operations;
• insurance operations against the risks of bodily accidents not included in those mentioned above
and against the risks of disability and illness;
• insurance operations against livestock mortality risks;
• insurance operations against all other risks not included in those mentioned above and which are carried out on a regular basis by insurance and reinsurance companies;
Abashi Shamamba / (with ECO Inspirations)