Request for an amendment or modification of the financial services tax in the article governing insurance agents and also employees who carry out business under subcontracting agreements.
I propose abolishing the tax on agents and sub-contracted associates.
In these specific cases, there is double or chain taxation of the same income.
The services of insurance agents, for which commissions are paid, have been included in the taxation under the FSCA, as is the case for all other intermediation services in the provision of financial services for which a commission is charged.
I give a concrete example of a chain tax on the same income.
An insurance agent (s.p.) has provided a service to an insurance company and will be paid a fee or commission for this service. The agent has a contract with an agency (Ltd). The agency receives a commission from the insurance company and pays 6.5% tax (the first tax payment). So the agent receives a commission from the agency and pays 6.5% tax (the second tax payment). However, if the insurance agent also had an employee who does work for him on a subcontract basis, when he receives a payment from the agent he would pay 6.5% tax (the third tax payment).
The tax should be abolished or modified to the effect that the 6.5% tax is paid only once on the same income or commission arising from the same transaction. In this particular case, only the agency and, in the absence of this, the agent.
Please also explain the specific case of taxation.
Are we agents who are third in line to be paid (i.e. 3x tax is paid on the same service or commission) liable to pay tax?