Insurance agents who offer asset management services, including bonds, equities, and money market funds (MMFs), are required to pay 16 percent value-added tax (VAT) on the commissions or fees earned from these financial products, the Tax Appeals Tribunal has said.
The tribunal’s verdict affects the close to 15,000 insurance agents who also deal in asset management services on behalf of financial providers such as Britam, ICEA, CIC, and Old Mutual.
