Tunisia: Lawmakers debate new 4% tax on insurers
Source: Middle East Insurance Review | Dec 2023
Insurance companies in Tunisia may have to pay a new temporary 4% tax on their profits under the draft 2024 Finance Bill (PLF 2024).
The new tax applies to banks and all financial institutions, including reinsurance companies and takaful companies. It excludes securities firms because they are not categorised as financial institutions.
Financial institutions in Tunisia are already subject to income tax of 35% and social solidarity contribution of 4%.
The new provisional tax is for the years 2024 and 2025. The tax is calculated based on the profits of financial institutions which are used to determine the amount of income tax.
The PLF 2024 also specifies that this new tax cannot be less than TND10,000 ($3,210), which means that even those financial institutions in deficit will be required to pay the 4% tax.
The Assembly of People’s Representatives started the debate on PLF 2024 on 17 November 2023. The government aims to cut the fiscal deficit to 6.6% in 2024 from 7.7% in 2023 through the PLF 2024. M