Morocco's new Investment Charter has profoundly changed the country's approach to economic attractiveness.
The objective is no longer solely to offer general tax advantages.
Morocco is now seeking to attract:

• productive investments,
• job-creating projects,
• industrial and technological activities,
• export projects,
• and investments capable of developing local ecosystems.

The Charter is based on 4 main support mechanisms, each targeting a different type of investor.

Main investment mechanism: intended for major investment projects.
A mechanism dedicated to strategic projects: concerns major projects having a significant impact on the economy.
SME scheme: Recently clarified by legal texts, it targets small and medium-sized enterprises.
Support mechanism for the international development of Moroccan companies: assists Moroccan companies wishing to invest and develop internationally, particularly in Africa.

1. The main investment mechanism

This is the “standard” mechanism intended for large investment projects.

What is the amount of aid available under this scheme?

The combined aid can reach up to 30 % of the amount of the eligible investment.

Which projects can benefit from this?

• representing at least 50 million MAD of investment with 50 stable jobs,

OR

• create at least 150 stable jobs.

How does the system work?

Morocco offers several bonuses that can be combined:

Employment bonus

• 5 %,
• 7 %,
• or 10 %

depending on the job intensity of the project.

Territorial bonus

10 % or 15 % if the project is located in certain priority provinces.

sectoral bonus

5 % for certain strategic sectors:
industry, digital, outsourcing, renewable energies, logistics, tourism, etc.

Other possible bonuses

• sustainable development,
• jobs of the future,
• local integration,
• female employment.

Example

A European company is opening an industrial plant with:

• 120 million MAD CAPEX investment,
• 200 stable jobs,
• establishment in a region outside Casablanca,

could potentially benefit from several tens of millions of dirhams in aid.

2. The mechanism dedicated to strategic projects

This scheme targets very large projects that have a major impact on the Moroccan economy.

Who is affected?

The projects of at least:

• 2 billion MAD,

having a significant impact on:

• employment,
• energy security,
• food security,
• industrial sovereignty,
• advanced technologies,
• or Morocco's international influence.

How does the system work?

Unlike the main scheme, here the aid is negotiated “on a case-by-case basis”.
We are moving more towards a logic of strategic agreement with the State.

This may include:

• specific subsidies,
• land,
• infrastructure,
• administrative support,
• personalized benefits,
• regulatory facilitation.

Example

For example, this mechanism could potentially apply to projects such as:

• gigafactory batteries,
• green hydrogen project,
• mega car factory,
• semiconductors,
• energy infrastructure,
• major export project Africa/Europe.

3. The SME scheme

This is probably one of the most significant changes in the new Charter, the details of which were clarified at the end of 2025. Previously, substantial aid was primarily aimed at large corporations. The SME scheme now opens access to subsidies for much smaller projects.

This device can be particularly useful for:

• foreign industrial SMEs,
• industrial startups,
• technology companies,
• small production units,
• outsourcing,
• regional subsidiaries in Africa.

Who is affected?

Private Moroccan companies created by Moroccans or foreigners.

This scheme expressly excludes companies whose shareholders include large companies or public companies:

• with a turnover between 1 and 200 million MAD,
• or new companies created less than 3 years ago.

Project conditions

The project must:

• representing an investment of between 1 and 50 million MAD,
• have at least 10 % of equity,
• create enough stable jobs,
• to be in an eligible activity and region.

Bonuses

The plan includes:

• an employment bonus:
  • 5 % if the jobs/investment ratio is ≥2 and ≤5,
  • 7 % if the ratio is >5 and ≤10,
  • 10 % if the ratio is >10; ;
• a territorial bonus:
  • 10 % for certain Category A provinces,
  • 15 % for certain category B provinces; ;
• a bonus for priority activities:
  • 10 % for certain targeted activities (industry, technology, outsourcing, renewable energies, etc.).

The combined aid can reach up to 30 % of the eligible amount.

Example

For example, a European SME opening:

• a small industrial site,
• a software development center,
• or an assembly unit

with :

• 8 million MAD investment,
• 20 jobs,

could potentially benefit from:

• of an employment bonus of 5 %
  (jobs/investment ratio = 20 ÷ 8 = 2.5),
• a territorial bonus of 10 % or 15 %
  if the project is located in an eligible province,
• and a priority activities bonus of 10 %
  if the activity falls within the targeted sectors.

In a favorable scenario, the project could therefore obtain:

5 % + 15 % + 10 % = 30 %

That is, up to:

2.4 million MAD in potential aid
based on an investment of 8 million MAD.

4. The mechanism for the international development of Moroccan companies

This scheme aims to support Moroccan companies that invest internationally, particularly in Africa.

Who is affected?

• Moroccan groups,
• Moroccan SMEs,
• companies wishing to expand outside Morocco.

Objective

Morocco is seeking to:

• encourage regional expansion,
• to develop Moroccan champions,
• strengthen Morocco's economic presence in Africa.

Concrete example

A Moroccan company that:

• opens a subsidiary in West Africa,
• invests in a factory,
• or develops a regional network,

could benefit from specific support.

We can assist you

In practice, the main challenge for a foreign investor is usually not “setting up a company” in Morocco.

The real issue is rather:

• to structure the project correctly from the outset,
• identify the right investment mechanism,
• securing tax and foreign exchange flows,
• prepare investment agreements,
• and maximize assistance while remaining compliant throughout the process.

This is precisely where professional support becomes important. At AuditCloud Morocco, we support foreign investors throughout the entire business setup process in Morocco, including:

• legal and tax structuring,
• creation of companies and subsidiaries,
• analysis of eligibility for the Charter's provisions,
• preparation of investment files,
• Financial modeling and business plans,
• CRI support and investment agreements,
• accounting, tax and social compliance,
• exchange control regulations,
• Import/export and customs structuring,
• accounting, payroll and recurring obligations,
• as well as certification and attestations related to subsidy schemes when necessary.

The goal is not just to obtain aid, but to build a structure:

• operationally viable,
• fiscally secure,
• compatible with exchange rate rules,
• and capable of developing sustainably in Morocco and internationally.

 

Since the January 1, 2025, all companies whose annual turnover excluding taxes is included between 2 and 10 million dirhams are subject to the obligations of Law 69.21 concerning their payment deadlines (deadline for paying their suppliers' invoices).

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I. OBLIGATIONS

1. Annual declaration for the 2025 financial year

• A annual declaration must be filed no later than April 1, 2026.
• It must include all invoices. paid And unpaid, as well as those that have exceeded the legal deadlines.

2. Quarterly declarations from 2026 onwards

• Starting with the 2026 financial year, companies in this bracket must file a quarterly statement.
• The deposit must take place before the end of the month following each quarter.

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II. SANCTIONS

1. Late payment of invoices

• Application of a penalty calculated on the basis of the Bank Al-Maghrib key interest rate,
  plus 0.85% per month or fraction of a month of delay.

2. Failure to file or late filing of returns

• Fixed fine determined based on annual turnover.

Amount of the sanctions

Annual turnover excluding VAT	Sanction
2,000,000 < CA ≤ 10,000,000	5,000 DH
10,000,000 < CA ≤ 50,000,000	12,500 DH
50,000,000 < CA ≤ 200,000,000	50,000 DH
200,000,000 < CA ≤ 500,000,000	125,000 DH
Revenue > 500,000,000	250,000 DH

Note

• For companies with a turnover between 2 and 10 million dirhams, The penalty for late filing or failure to file is 5,000 DH.
• This fine is in addition to the late payment penalties on invoices exceeding the legal deadlines.

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THE Draft Finance Bill (PLF) 2026 It was definitively adopted by Parliament in December 2025, following its successive review by both chambers. Below is an overview of the main tax measures adopted:

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1. Common and cross-cutting measures

1.1. Extension of withholding tax (corporate income tax and VAT) on services

The scope of withholding tax is extended to remuneration for services rendered by the following entities:

• credit institutions and similar organizations,
• insurance and reinsurance companies,
• companies whose turnover reaches certain thresholds.

Implementation is gradual, depending on turnover:

• starting from 1^er July 2026: companies with a turnover ≥ 500 million dirhams,
• starting from 1^er January 2027: companies with a turnover ≥ 350 million dirhams,
• starting from 1^er January 2028: companies with turnover ≥ 200 million dirhams.

1.2. Withholding tax on business rents

A withholding tax of 5 % is established on the rental income from built or unbuilt properties and constructions of any kind, when the rents are paid by certain taxpayers to:

• companies subject to corporate income tax,
• or natural persons subject to professional income tax (RNR/RNS scheme).

The measure applies from the 1^er July 2026. The amount withheld is deductible from the final tax due, with the possibility of a refund in case of excess.

1.3. Extension of the Social Solidarity Contribution (CSS)

The social solidarity contribution on profits and income is extended for the years 2026, 2027 and 2028. It remains payable by companies and natural persons under the actual net profit regime whose annual profit reaches or exceeds 1 million dirhams, according to a progressive scale.

1.4. Modernization of electronic accounting rules

The criteria for maintaining accounting records electronically will be incorporated directly into the law, without reference to a subsequent regulatory text. The objective is to secure the legal framework for the digitization of accounting.

1.5. Harmonization with business difficulty procedures

The tax provisions are aligned with the new procedures provided for by the Commercial Code:

• prior notification to the administration in the event of a request to open safeguard proceedings,
• accelerated tax rectification procedure,
• obligation to provide information in the event of the opening of a receivership or liquidation procedure not initiated by the company.

1.6. Combined tax audit of natural persons

The administration can now proceed, under certain conditions, to a combined control relating simultaneously to:

• the accounting review,
• the examination of the individual's overall tax situation.

This control is governed by specific rules regarding duration, notification, and adversarial interviews.

1.7. Updating the rules of limitation in the case of conditional tax benefits

Taxpayers who have benefited from conditional tax advantages and who have provided guarantees may remain subject to the recovery of taxes, duties, fines, penalties and surcharges, even after the expiry of the limitation periods, in the event of non-compliance with the conditions attached to these advantages.

1.8. Simplification of the email address provided to the DGI

Taxpayers will be able to use a freely chosen email address (and no longer necessarily provided by a trusted service provider) for their electronic exchanges with the tax authorities.

1.9. Updating of stamp duties

As a continuation of the dematerialization, the 3 % discount granted to resellers of physical stamps is eliminated, this provision having become obsolete.

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2. Corporate Income Tax (CIT)

2.1. Reform of the tax treatment of OPCCs

The tax regime for Undertakings for Collective Investment in Capital (UCITS) has been clarified. Distributions made by these vehicles will be taxed in the hands of the beneficiary according to the real economic nature underlying products:

• dividends,
• interests,
• capital gains from disposal.

This reform aims to guarantee the tax neutrality of OPCCs and to avoid any artificial transformation of the nature of income for investors.

2.2. Revenues related to international shipping vessels

Lease fees and similar remuneration relating to the chartering, leasing or maintenance of vessels used in international maritime transport, when borne or recorded in the name of non-resident persons, benefit from a permanent exemption from withholding tax under the heading of IS.

2.3. Reporting obligation extended to rental income of non-residents

Non-resident companies without an establishment in Morocco, already required to declare capital gains on the sale of securities in Morocco, must now also declare income generated from renting out real estate.

2.4. Deduction of donations made to sports clubs

Companies will be able to deduct from their taxable income donations, in cash or in kind, made to sports clubs established in accordance with Law No. 30-09, up to the following limits:

• of 20 % of taxable profit, And
• of a ceiling of 5 million dirhams per financial year.

2.5. Contributions of assets by sports associations: extended exemption

The corporate income tax exemption applicable to asset and liability transfers from sports associations to sports companies has been extended. It now covers transfers made to the real value, and no longer solely at net book value.

In return, in the event of a subsequent sale of the contributed assets, the receiving company will have to include in its taxable income the capital gain calculated on the basis of the initial value of the assets.

2.6. Clarification of the five-year exemption for sports companies

The five-year total exemption from corporate income tax granted to sports companies (Law No. 30-09) is clarified: it applies from the first taxable sale, and not simply from the first year of operation. This clarification helps to secure the starting point of the exemption period.

2.7. Exclusion of the 40 % IS rate for certain microfinance institutions

Public limited companies resulting from the transformation of microcredit associations are no longer subject to the 40 % rate during their first five financial years of operation. They will benefit from the standard corporate income tax rate applicable to companies.

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3. Income Tax (IR)

3.1. Payment of income tax on the sale of securities within 30 days

Taxpayers who sell securities, equity or debt instruments not registered with authorized intermediaries will now have to:

• pay the income tax due for each transfer within 30 days following the transaction, via a notification slip, and
• file a summary annual statement of all the transfers, which will also serve as the basis for claiming a refund of any excess tax.

3.2. Reclassification of OPCC distributions for IR

Distributions made by UCITS corresponding to capital gains realized by the fund are classified as profits from movable capital. This measure ensures consistency between the treatment of these products under corporate income tax and personal income tax, and offers better tax transparency for individual investors.

3.3. Gradual reduction on the salaries of professional athletes

To support the professionalization of sport, a specific tax allowance will be applied to income paid by sports companies to professional athletes, educators, coaches and technical teams:

• 90 % for the year 2026,
• 80 % for the year 2027,
• 70 % for the year 2028,
• 60 % for the year 2029.

3.4. Tax advantage for taxpayers in CPU upon cessation of activity

Individuals subject to the Single Professional Contribution (CPU) scheme, not benefiting from any pension scheme and aged at least 65 years old On the date of cessation of their activity, they benefit from:

• 50% reduction % regarding the capital gain related to the intangible assets of the business,
• within the limits of 1,000,000 DH.

3.5. Extension of exemptions to CIMR supplementary pensions

The exemptions previously reserved for certain pensions and life annuities are extended to pensions and annuities paid within the framework of group supplementary retirement insurance contracts managed by CIMR, under the same conditions as the basic schemes. This measure strengthens fairness between the different categories of private sector retirees.

3.6. Tax regime for employees of Casablanca Finance City (CFC)

The flat rate of 20 % applicable to the salaries and wages of employees of companies benefiting from CFC status now applies:

• for a maximum duration of 10 years,
• on continuous or discontinuous periods of work within the companies concerned.

Employees may, by irrevocable option, choose to be taxed according to the progressive tax scale, provided they notify their employer of their choice before the 1^er FEBRUARY of the year in question. CFC companies must attach to their annual declaration of salaries and wages a statement listing the employees benefiting from the scheme.

3.7. Revaluation of the deduction for family expenses

The amounts relating to the deduction for family expenses are updated:

• Amount per dependent: 600 DH (instead of 500 DH),
• Overall annual limit: 3,600 DH (instead of 3,000 DH).

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4. Value Added Tax (VAT)

4.1. Extension of the exemption for sports companies (2026–2030)

The VAT exemption granted to sports companies is extended for a further period of five years, of the 1^er January 2026 to December 31, 2030, in order to allow the new structures to consolidate.

4.2. Harmonization of exemption periods for investment goods

The VAT exemption scheme for investment goods is simplified:

• Initial duration: 36 months,
• Possible extension: 24 additional months, whether for local purchases or imports, under certain conditions.

4.3. Framework for formalities for imported capital goods

Import purchases of capital goods under investment agreements are subject to specific regulatory procedures (implementing decree), in order to secure the use of the exemption.

4.4. Extension of the exemption to agricultural inputs

The VAT exemption is extended to all fertilizers and growing media for agricultural use as defined by law no. 53-18. The objective is to align the tax treatment of all agricultural inputs and to reduce the acquisition cost for farmers.

4.5. Reverse charge of VAT on the purchase of waste and metals

Industrial companies subject to VAT must now apply the mechanism of self-assessment on their purchases of new industrial waste, metals, and other recovered materials. They will have to:

• declare the VAT due on their turnover declaration,
• and deduct it simultaneously on the same tax return.

4.6. Exemption for short pasta

THE short, uncooked, and unstuffed pasta are added to the list of products exempt from VAT without right to deduction, alongside bread, couscous, semolina, flours intended for human consumption and certain yeasts.

4.7. VAT exemption (with right to deduct) for blood and its derivatives

Blood and its derivatives are exempt from VAT with the right to deduct input tax, including on import, which reduces the cost of these sensitive products while preserving tax neutrality for the operators concerned.

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5. Registration fees

5.1. Public procurement: introduction of a 0.1 % duty

Public procurement, initially subject to mandatory and free registration, now supports a registration fee of 0.1 %, due by the successful bidder, in order to improve traceability and access to information for the tax authorities.

5.2. Harmonization of rights regarding guarantees and releases

Secured credit transactions (guarantees, mortgages, pledges) and their releases all benefit from a a single fixed fee of 200 DH, regardless of the nature of the lending institution (credit institution, similar organization or financing company).

5.3. Additional fee of 2 % in case of untraceable payment

An additional registration fee of 2 % is established for transfers of ownership for valuable consideration exceeding 300,000 dirhams:

• of real estate or real property rights,
• or business assets,

This right applies only to the portion of the price paid under non-compliant conditions when the payment methods used are untraceable or not mentioned in the transaction.

5.4. Expansion of exempted transactions

Several categories of documents are exempt from registration fees, including:

• certain real estate acquisitions for social use by social welfare institutions,
• the transfer of assets within the framework of the restructuring of corporate groups,
• certain transfers of shares or stock, subject to justification that they are not transparent real estate companies or companies whose assets consist primarily of real estate,
• Credit agreements granted by credit institutions and similar organizations.

5.5. Tax rate of 5 % on transfers of shares in unlisted real estate companies

Transfers, whether for consideration or free of charge, of shares or units held in unlisted real estate companies and companies whose assets consist primarily of real estate are subject to a rate of 5 %.

5.6. Fixed fee of 1,000 DH for group restructuring operations

Companies that have opted for the group restructuring tax regime benefit from fixed fee of 1,000 DH on asset transfers carried out within this framework.

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The information presented in this article is provided for general informational purposes only.
For an analysis tailored to your situation or that of your company, it is recommended to consult us directly in order to obtain specific support that is in line with your context.

By Mohamed Yassine Fizazi, Chartered Accountant DPLE – Tax Specialist, Managing Partner AuditCloud Morocco

The 2026 Finance Bill is a continuation of the tax reforms provided for by framework law 69-19, with four main areas:

1. Combating the informal economy and strengthening tax transparency

• Extension of withholding tax for corporate income tax and VAT to services provided by legal entities to large companies (turnover ≥ 50M), financial institutions and insurance companies.

• New withholding tax of 5.% on business rents paid to companies subject to corporate income tax and to natural persons engaged in a professional activity.

• Introduction of an additional registration fee of 2 % on untraceable real estate transactions (cash payment, lack of proof of payment, or payment without the presence of the notary).

• Mandatory reverse charge VAT on industrial waste and recovered materials, to combat fraud observed in the recycling sector.

• Strengthening tax controls and audit tools : generalization of the automated risk analysis module, automatic reminders and digital tracking of VAT and income tax refunds
• Clarification regarding income distributed by collective investment schemes in capital (CIUCs) are now taxed according to the actual nature of the products (interest, dividends or capital gains), in order to avoid any confusion with distributions treated as dividends.

2. Support for the competitiveness and professionalization of key sectors

Agricultural sector

• The VAT exemption is extended to all fertilizers and growing media for agricultural use.

Sports sector

• Exemption from corporate income tax for 5 years from the first taxable sales year for sports companies established under Law No. 30-09

• Deduction of donations paid to these companies (capped at 10 % of net profit, max 5 M DH/year).

• Degressive tax allowances on income tax for athletes, coaches and technical staff: 90 % (2026), 80 % (2027), 70 % (2028), 60 % (2029)

• VAT exemption extended for sports activities until December 31, 2030.

Microfinance

• Institutions resulting from the transformation of microcredit associations into public limited companies will benefit from an exemption from the IS rate of 40 % during their first five fiscal years – welcome support for inclusive banking.

Industrial sector and import/export

• Selective customs adjustments : Increased import duties on certain finished products (jacquard textiles, household appliances, photovoltaic panels) and reduced duties on industrial inputs (aluminum profiles, PVC resins, aerosol cans) in order to protect domestic production while supporting strategic inputs

• Government empowerment to modify tariff rates and customs duties during 2026 to respond to economic developments

3. Simplification and harmonization of the tax framework

• Easing of tax email address management, without the obligation to use an approved service provider.

• Electronic accounting : elimination of the regulatory reference; the criteria will now be set by the law on the accounting obligations of traders

• Alignment of VAT exemption periods For capital goods: Additional period extended to 24 months, unified for domestic and import VAT.

• Standardization of the registration fee at 200 DH for all credit and guarantee transactions.

• Introduction of a registration fee of 0.1 % on public procurement

• Safeguard and recovery procedures : obligation for companies in difficulty to inform the tax authorities before the commencement of any proceedings, and generalization of accelerated rectification; electronic filing of the preliminary declaration
• Stamp duty update : removal of article 236-3° of the CGI relating to the 3 % discount for physical stamps, which became obsolete with dematerialization

4. Social cohesion and continuity of solidarity financing

• There social solidarity contribution is renewed for the period 2026-2028, at the same progressive rates (1.5% to 5% of 1% of 1% of 3 years) for companies whose profits exceed one million dirhams. This renewal for 2026-2028 is part of the sustainable financing of social protection, direct aid to families, and the social housing program.

5. Digitalization and modernization of tax administration

• Deployment of the electronic invoicing (large companies in the first phase).

• Generalization of the electronic notification and of the electronic VAT and income tax refunds.

• Implementation of modules for’artificial intelligence for automated fraud detection and an "e-control" platform.

• VAT collection platform for digital services : extension of the automatic collection system for foreign digital service providers

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The information presented in this article is provided for general informational purposes only.
They are based on the provisions of the 2026 Finance Bill, published by the Ministry of Economy and Finance, the official presentation note and the analyses available at the time of writing. They do not constitute personalized tax advice or legal counsel.
AuditCloud Morocco and its authors decline all responsibility for decisions made solely on the basis of this information. For an analysis tailored to your situation or that of your company, it is recommended to consult us directly in order to obtain specific support that is in line with your context.

Below is a summary of the main tax measures introduced by the 2025 Finance Law; ;

I. Income Tax (IR)

1. Reform of the progressive scale :
   • Increase in the exemption from 30,000 to 40,000 dirhams (exemption for salaries under 6,000 dirhams) also applicable to the withholding tax threshold for property income
   • Revision of the scale as detailed below.
   • Applicable from January 1, 2025. 
     

     Income brackets in dirhams (Before Finance Law 2025)	Rates (Before Finance Law 2025)	Amounts to be deducted (Before Finance Law 2025)	Income brackets in dirhams (After Finance Law 2025)	Rates (After Finance Law 2025)	Amounts to be deducted (After LF 2025)
     0 to 30,000	0%	0	0 to 40,000	0%	0
     30,001 to 50,000	10%	3000	40,001 to 60,000	10%	4000
     50,001 to 60,000	20%	8000	60,001 to 80,000	20%	10000
     60,001 to 80,000	30%	14000	80,001 to 100,000	30%	18000
     80,001 to 180,000	34%	17200	100,001 to 180,000	34%	22000
     Over 180,000	38%	24400	Over 180,000	37%	27400

2. Benefits for internships and recruitment :
   • Income tax exemption conditions extended to all trainees (max 6000 dh/month)
   • Exemption for internships limited to 12 months instead of 24 months.
   • Exemption for 24 months if trainees are recruited on permanent contracts (capped at 10,000 dirhams/month).
   • Applicable from January 1, 2025.
3. New tax categories :
   • Express addition of income categories such as unjustified income discovered during tax audits, winnings from foreign online gambling, and miscellaneous income from lucrative activities not classified in existing tax categories. 
   • Withholding tax of 30% and social solidarity contribution on gambling winnings
   • Applicable from January 1, 2025 & July 1, 2025
4. Revision of the tax treatment of buybacks of supplementary pensions:
   • Exemption subject to a minimum duration of 8 years for contracts.
   • Clarification of the taxable base for buybacks before this deadline.
   • This requirement is excluded in the event of death or disability.
   • Applicable from January 1, 2025.
5. Clarification of the tax treatment of property transfers:
   • Taxation of capital gains on land transfers at a value exceeding the acquisition price.
   • Exclusion from income tax for transfers made at their original acquisition price.
   • Applicable from the January 1, 2025.
6. Eligibility of contributions of shares and equity interests:
   • Confirmation that contributions of shares in unlisted real estate-focused companies are eligible for the tax payment deferral scheme.
   • Applicable according to article 161 bis-II of the CGI.
7. Taxation of land profits related to expropriation:
   • Clarification of the taxation of land profits realized during expropriations or judicial transfers.
   • Withholding tax is mandatory for these amounts, with the possibility of deducting it from the income tax due.
   • Applicable from July 1, 2025.
8. Land income :
   • Option for a final tax payment of 20% instead of withholdings of 10% or 15% with obligations to declare global income.
9. Retirement pensions 
   • Income tax exemption for retirement pensions and life annuities from January 1, 2026 for basic pension schemes.
   • Annual declaration exemption for beneficiaries of these tax-exempt pensions.
   • Transitional reduction of 50% of the IR for pensions and annuities received in 2025.
   • Supplementary schemes remain subject to income tax according to the usual rules.
10. Other changes:
    • Increase in the income tax reduction for family expenses from 360 to 500 dirhams per dependent (maximum of 3000 dh)
    • The increase in the amount of vouchers representing food or meal expenses issued by employers to their employees to 40 dirhams instead of 30 dh per day worked.

II. Corporate Income Tax (CIT)

1. Vehicle depreciation :
   • Increase in the deduction limit for passenger transport vehicles 300,000 to 400,000 dirhams, amortizable over 5 years.
   • Applicable from 1 January 2025.
2. Restructuring of corporate groups :
   • Reduced detention threshold 80% at 2/3 for parent companies.
   • Net capital gains benefit from a payment deferral instead of a postponement.
   • Possibility of transferring fixed assets to net book value in exchange for securities
   • Applicable to transfers made from 1 January 2025.
3. Joint ventures (SEP) & Economic Interest Groups (EIGs) :
   • Corporate income tax liability is mandatory for SEPs with more than 5 partners or including a legal entity.
   • Integration of GIEs into the field of IS with distribution of results between members.
   • SEPs not subject to corporate income tax must keep accounts.
   • Applicable to financial years beginning on or after January 1, 2026 for SEP.
   • Applicable from 1 January 2025 for GIEs.
4. Revision of the application procedures for withholding tax on income from shares, equity interests and similar income:
   • Amendment to the provisions of Article 247-XXXVII-C of the French General Tax Code (CGI) to provide for the application of withholding tax to the proceeds from shares, equity interests and similar income distributed, as follows:
     • 12,50%, for amounts distributed from 1 January 2025 onwards; ;
     • 11,25%, for amounts distributed from 1 January 2026 onwards; ;
     • 10%, for amounts distributed from 1 January 2027.
5. Extension and Expansion of the Capital Gains Tax Allowance on Real Estate 
   • Tax relief of 70% on capital gains from real estate:
   • Extension of the tax relief until December 31, 2030.
   • Extension to land and building sales from 2025.
   • Subject to the reinvestment of proceeds from disposal in accordance with article 247-XXXV of the CGI.
   • Applicable to companies subject to corporation tax.

III. Value Added Tax (VAT)

1. Removal of VAT application for occasional customers residing in Morocco.
   • Removal of the application of VAT to remote service supplies for occasional customers residing in Morocco.
   • Definition of clear criteria for establishing tax residency in Morocco.
   • Transition to quarterly reporting for non-resident service providers.
2.  Exemption for capital goods used in private education:
   • Extension of VAT exemption to assets acquired by real estate companies and OPCIs for educational projects.
   • Subject to compliance with regulatory formalities and the obligation to preserve assets.
   • Applicable to companies and OPCIs that have not exceeded the 36-month exemption period before January 1, 2025.
3. Taxation of dried yeasts subject to VAT:
   • Application of a VAT rate of 20% domestically and on imports to ensure fair competition between local and imported products.
   • Transitional measures for VAT on stocks prior to January 1, 2025 and transmission of a list of debtor customers as of December 31, 2024 for taxpayers concerned by the cash basis system.
4. Seasoned meats :
   • Extension of VAT exemption to seasoned fresh or frozen meats.
5. Increase in local resources :
   • Minimum share of VAT allocated to local authorities increased by 30% to 32%.
6.  Temporary exemption from VAT on the importation of certain products:
   • Application of VAT exemption on the importation of live animals, fresh or frozen meat, cargo rice and virgin and extra virgin quality olive oils.
   • Measure applicable from January 1, 2025 to December 31, 2025, within the limits of the quotas set.

IV. Registration fees

1.  Clarification of long-term leases:
   • Replacement of the term "emphyteutic lease" with "lease with a duration exceeding 10 years".
   • Revision of the taxable base for leases exceeding 10 years.
   • Total annual rent plus charges (maximum of 20 years)
   • Applicable from January 1, 2025.
2.  Penalties for electronic recording:
   • Targeted professionals (notaries, adouls, chartered accountants and certified public accountants)
   • A fine of 1000 dirhams for omission or error in electronic registration.
   • Correction possible within 30 days without penalty.
   • Applicable from January 1, 2025.
3.  Transmission of electronic documents:
   • Notaries are required to transmit documents with electronic signatures. .
   • Applicable from January 1, 2025.
4.  Control by land registrars:
   • A certificate of registration must be attached to documents presented to the land registrars.
   • Applicable from January 1, 2025.
5.  Exemption for free transfers to the families of martyrs and wounded soldiers :
   • Exemption from registration fees for gratuitous transfers to their beneficiaries.
   • Applicable from January 1, 2025.
6.  Tax exemption for the establishment of guarantees:
   • Exemption from registration fees for guarantees and mortgages relating to the payment of taxes.
   • Applicable from January 1, 2025.
7. Rights for restructuring groups of companies:
   • Setting a registration fee of 1000 dirhams for transfers and contributions related to restructurings.
   • Applicable from January 1, 2025.

V. Special annual tax on vehicles

1. Extension of payment deadlines :
   • Extension of 30 to 60 days for vehicles put into circulation during the year.

VI. Common Measures

1. FIFA Representation in Morocco :
   • Tax exemptions (corporate tax, income tax, VAT, registration fees, etc.) for activities related to FIFA and its affiliates.
2. Extension of tax incentives :
   • Reduction of 70% on capital gains from the sale of fixed assets extended until 2030.
3. Codification of the tax on cement :
   • Integration into the CGI for simplification and better management.
4. Amicable agreements :
   • A clarified legal framework for agreements between tax authorities and taxpayers.
5. Electronic notification :
   • Validation of electronic notifications as equivalent to traditional notifications.
6. Local Taxation Commissions :
   • Expanding the scope of responsibilities to include new income categories.

 

Useful links and reference documents:

🔗General Tax Code (CGI) 2025

🔗Summary note published by the DGI, summarizing the main tax provisions of the 2025 finance law.

The guide for Moroccans Residing Abroad (MREs) published by the General Directorate of Taxes (DGI) addresses several key aspects related to tax obligations and benefits available to this category of citizens. It provides information on:

• Tax assistance services : implementation of regional services and communication tools to answer questions from Moroccans living abroad, including a telephone information center and online assistance.
• Registration fees : details on reduced rates for the acquisition of real estate and donations, with details on the types of property concerned (housing, land, etc.).
• Value Added Tax (VAT) : explanation of VAT exemptions for certain categories of goods, as well as the procedure for obtaining the release of mortgage for social housing.
• The social solidarity contribution : conditions for exemption for buildings used as a main residence and the taxation thresholds for areas exceeding 300 m².
• Income taxes provisions on property income and profits from the sale of real estate, as well as possible exemptions depending on the case (social housing, donations between relatives).
• VAT refund : conditions allowing Moroccans residing abroad (MREs) on short stays in Morocco to benefit from VAT refunds on purchases made in Morocco, with strict criteria on the types of goods concerned.

The guide serves as a guidance tool to help Moroccans residing abroad (MREs) understand their tax rights and obligations, while offering them opportunities for exemptions and assistance tailored to their situation.

Tax guide for Moroccans residing abroad (PDF)

 

The tax authorities conduct a comprehensive review of taxpayers' tax situations to ensure their standard of living aligns with their declared income. This process can be triggered by various indicators, including expenditures that appear disproportionate to declared income or conspicuous displays of wealth. Furthermore, tax authorities may also rely on data from databases they have access to, both nationally and internationally. This data can reveal contradictory information or inconsistencies in taxpayers' tax returns, prompting the tax authorities to examine their financial situation more closely during a tax audit.

In Morocco, tax audits are a regulated process designed to ensure that taxpayers comply with current tax legislation. Here are the key steps:

Selection and notification: Taxpayers are selected for audits for numerous reasons, which cannot be listed exhaustively, but generally either randomly or systematically, or due to inconsistencies in their tax returns or other specific criteria. A notification is sent to inform the taxpayer of the type of audit and the taxes concerned.

Preparation: Before the audit begins, the taxpayer prepares by collecting and organizing relevant tax documents, such as supporting documents, accounting records, and previous tax returns. This step is crucial as it allows the taxpayer to prepare as thoroughly as possible to optimize the audit process and its outcome.

Audit Procedure: Tax inspectors examine accounting documents, ask questions, and verify the accuracy of tax returns. Following the checks carried out in accordance with Article 212 of the General Tax Code (CGI), the results must be communicated to the taxpayer through a multi-step process, which may vary depending on the circumstances:

A) Proposed adjustments: the tax administration sends notifications to the taxpayer regarding the adjustments to be made.

B) First notification of adjustments: the taxpayer receives a first notification concerning the proposed adjustments.

C) Taxpayer response: the taxpayer may respond to the notifications by providing explanations or justifications.

D) Second notification of adjustments: if necessary, a second notification of adjustments may be sent to the taxpayer.

E) Second response from the taxpayer: the taxpayer can respond again to the notifications, by reiterating or modifying their arguments.

F) Finalization of the procedure: depending on the circumstances, the procedure may be finalized with an agreement on the notified elements, or in case of disagreements, the taxpayer may appeal to the competent legal authorities.

Conclusion and payment: Once the audit is complete and the tax adjustments are finalized, the taxpayer must pay the amounts due, including penalties and late payment interest, or initiate legal proceedings in case of dispute.

It should be noted that for the examination of the entire tax situation of natural persons, the 2024 Finance Law provides for the establishment of a simplified adversarial procedure, guaranteeing the rights of taxpayers and promoting continuous dialogue with the tax administration at each stage, as well as the right of appeal before the national tax appeals commission and possibly before the competent courts.

It should also be noted that this measure is proposed in parallel with the one concerning the voluntary regularization of taxpayers' tax situation and the discharge contribution relating to the spontaneous regularization of assets and liquid assets held abroad, thus offering the possibility to spontaneously correct their tax situation and comply with national tax obligations.

Our team is here to support you every step of the way, providing expert advice and personalized assistance to ensure your rights are protected and you confidently meet your tax requirements. Don't hesitate to contact us to benefit from our expertise and support throughout this process.

Circular note no. 735 concerning the tax provisions of Finance Law no. 55-23 for the 2024 budget year has been made public by the Directorate General of Taxes (DGI).

The link to the document is below:

Circular Note No. 735LF2024

The 2024 Finance Law introduces a set of crucial measures that reshape the tax landscape for Moroccan taxpayers. Discover the implications in this short summary which briefly presents the tax provisions brought about by this law.

I) Value added tax (VAT)

We are starting with VAT as 2024 is clearly the year of change for the VAT regime in Morocco with many important changes.

1) Withholding of VAT (WHT):

This measure is probably the one that will have the broader tax implications for taxpayers in Morocco as it will impact how customers contract and pay their suppliers.

WHT on capital goods and taxable works:

 

⚠️ VAT will now be withheld at source by customers for all suppliers of taxable capital goods and works, who do not prove tax regularity by providing a certificate of tax regularity issued by the tax administration dating from less than 6 months.

Exceptions: Public sector entities will be exempted from this withholding obligation.

 

WHT on services:

⚠️ Withholding of 75% of the VAT amount for service providers by customers from public sector entities and for individuals dealing with private sector entities.

⚠️ 100% withholding if there is no certificate of tax regularity from suppliers.

 

Exceptions to the WHT rules:

• Electric power and water distributed publicly.
• Sanitation and meter rental.
• Telecom operators.
• Insurance brokerage agents.
• Transactions ≤ 5,000 MAD (limit 50,000 MAD/month/supplier).

 

VAT credit refund:

No doubt to compensate for the impact on taxpayers' cash flow, the finance law provides for the restitution of VAT credit following deduction at source. The operating mode and its effectiveness will remain to be clarified.

 

2) Other Measures related to VAT

 

Changes to VAT measures:

Conservation of Investment Assets (PP&E)	The law reinstates the obligation to keep investment goods in a capital account for 60 months, under penalty of reimbursement to the Treasury of the initial advantage.
VAT for Digital service providers and E-Commerce	The 2024 Finance Law targets online services provided by foreign suppliers to local consumers to include them into VAT's scope.
Solidarity of Management for VAT purposes	The law establishes solidarity for the collection and payment of VAT, involving any person exercising administrative or management functions and any effective beneficiary of unpaid VAT.
VAT Self-Assessment and deduction	This new optional regime allows entities subject to VAT to calculate this tax on their out-of-scope or exempt purchases, simultaneously allowing them to deduct it.
Tax Regime for Real Estate Rentals and Investment Exemptions:	Clarification of the VAT rules for the rental of non-equipped premises for professional use, they are subject to VAT when their acquisition or construction was made with deduction or exemption from this tax.

Rearrangement of VAT Rates:

 

Gradual reduction of the rate from 14% to 10%. 12% from January 1, 2024, 10% from January 1, 2025.	Insurance-related services	📉
Reduction from 7 to 10%	Water from public networks, sanitation, rental of water meters (excluding certain operations).	📈
Progressive alignment of the VAT rate 16% from January 1, 2024, 18% from January 1, 2025, 20% from January 1, 2026.	Electricity	📈
Progressive alignment of the VAT rate 11% from January 1, 2024, 15% from January 1, 2025, 20% from January 1, 2026.	Rental of electricity meters	📈
Gradual reduction from 14% to 10%. 12% from January 1, 2024, 10% from January 1, 2025.	Renewable energy sold by producers:	📉
Gradual increase from 7% to 10%. 8% from January 1, 2024, 9% from January 1, 2025, 10% from January 1, 2026.	Refined sugar	📈
Increase from 7% to 10%.	Economy cars	📈
10% reduction over 3 years: 13% from January 1, 2024, 12% from January 1, 2025, 10% from January 1, 2026.	Urban and road transport of passengers and goods	📉
Increase to 20% over 3 years: 16% from January 1, 2024, 19% from January 1, 2025, 20% from January 1, 2026.	Other transport (excluding urban and road)	📈

 

VAT exemptions

 

Common Consumer Products:

 

With right of deduction: pharmaceutical products, Domestic water, Sanitation services.

Without right of deduction: Butter, Powdered milk, Canned sardines, Household soap, School supplies.

 

Mohammed VI Foundation:

The Mohammed VI Foundation for Science and Health benefits from a VAT exemption with right of deduction.

 

Cooperatives:

Cooperatives offering services related to agriculture benefit from an exemption under regulated conditions.

 

Operating concessions upon import:

The VAT exemption is established up to the amount of VAT liquidated upon importation for the royalties and rights granted.

 

 

II) Corporate taxes (CT)

 

Clarification of the conditions for reducing the CT rate from 35% to 20%:

Clarification on the conditions for transition of the Corporate Tax rate from 35% to 20%. The application of the reduced rate of 20% is conditional on maintaining the net profit below one hundred million (100,000,000) dirhams for three (3) consecutive financial years. However, this rule does not apply if the net profit exceeding the threshold results from non-current operations.

 

Mohammed VI Foundation for Science and Health

The 2024 Finance Law grants a permanent exemption from Corporate Tax (IS) to the Mohammed VI Foundation for Science and Health for all of its activities, operations and the resulting income.

Donations from taxpayers subject to CT, whether in cash or in kind, allocated to the Mohammed VI Foundation for Science and Health, are deductible for tax purposes.

 

III) Personal Income Tax (IT)

 

Deductibility of social security contributions:

The 2024 Finance Law extends the right to deduct social contributions paid under the basic compulsory health insurance (AMO) to professionals, self-employed workers and self-employed persons carrying out a liberal activity.

 

Clarification of the calculation of Profit from movable capital following an inherited transfer:

In the event of transfer of inherited securities, the acquisition price taken into account is the market value of these securities at the death of the deceased, as recorded in the inventory drawn up by the heirs. In the absence of this information, the taxpayer can declare the market value on the day of the deceased's death, without taking into account acts of joint ownership or others. In the event of automatic taxation, the taxation is based on the transfer price, due to lack of precise information.

 

Clarification of the calculation of Land Profit following an inheritance:

Similar to the previous point, the acquisition price of inherited buildings is determined by the market value on the day of the deceased's death, as recorded in the inventory drawn up by the heirs. In the absence of this information, the taxpayer can declare the market value on the day of the deceased's death, without consideration of acts of joint ownership or others.

Flat rate reduction on artists' fees:

The gross amount of fees awarded to artists, whether they work individually or within troupes, will now be subject to a 30% withholding tax. However, a flat-rate reduction of 50% will be applied before this deduction.

 

IV) Common measures

 

Principle of the right to error:

The law establishes a system allowing taxpayers to spontaneously correct their tax declarations. They can request from the tax administration a statement of the irregularities noted, then submit a corrective declaration, pay the additional duties without penalties, accompanied by an explanatory note specifying the rectifications made.

 

Simplification of the abuse of rights procedure:

To simplify the fight against abuse of rights, the 2024 Finance Law removes one level of appeal, now only the national tax appeal commission. Taxpayers can request prior consultation with the administration for potentially abusive transactions.

 

Improvement of the examination of the tax situation of individuals:

A simplified adversarial procedure is established to ensure the rights of taxpayers, including the sending of an audit notice, an oral debate, a maximum audit duration of 6 months, and communication of adjustments within 3 months following the closing of the audit. control.

 

Clarification of non-cumulative tax benefits:

The 2024 Finance Law repeals the provisions preventing the accumulation of certain tax advantages, in order to avoid any divergence of interpretation between common law tax advantages and those provided for by the investment charter, thus supporting the tax and investment.

 

V) Registration rights

 

Alignment of rates for acts of allocation of premises or land by cooperatives and associations:

The 2024 Finance Law established an alignment of registration fee rates for all acts of allocation of premises and land by cooperatives or associations.

• For built premises intended for residential, commercial, professional or administrative use, the rate increased from 1.5 to 4%.
• As for acts granting bare land, the rate increased from 1.5% to 5%.
• In addition, the transfer of housing to the cooperator after full release of the subscribed capital will be taxed at 4%.

 

Exemption from registration fees for the Mohammed VI Foundation for Science and Health:

The 2024 Finance Law exempted registration fees for acts related to the activities and operations of the Mohammed VI Health Sciences Foundation created according to Law No. 23-23.

 

Supervision of acts subject to registration:

Notaries, civil servants exercising notarial functions, Adouls, Hebrew notaries and any person drafting or contributing to the drafting of a deed subject to registration must now respect two obligations:

• Present a certificate prior to the drafting of any act justifying the payment of taxes and duties linked to the building for the year of transfer or transfer, as well as for previous years.
• Include the article numbers relating to the housing tax and the municipal services tax in the documents drawn up.

VII) Other tax measures

 

Public debt recovery code:

The possibility of electronically sending and notifying public debts to taxpayers is introduced. Provisions are amended to allow the Minister of Finance to grant discounts or moderations on late payment interest and penalties.

 

Discharge contribution for regularization of assets abroad:

A final contribution is established for the voluntary regularization of assets held abroad before January 1, 2023. It requires the declaration of assets, their repatriation in foreign currency, and the payment of a final contribution varying between 2% and 15% depending on cases.

 

Voluntary regularization of the tax situation of taxpayers:

A derogatory measure is introduced in 2024 allowing the voluntary regularization of the tax situation of individuals. It concerns profits and taxable income not declared before January 1, 2024, with a contribution set at 5% of liquid assets and acquired goods not declared.

 

Discharge contribution for check payment incidents:

A final contribution is set at 1.5% of the amount of unpaid checks issued before December 31, 2023, making it possible to avoid penalties relating to payment incidents. The maximum amounts are 10,000 dirhams for individuals and 50,000 dirhams for legal entities.

 

State assistance for housing support:

The conditions for benefiting from state aid for the main residence are revised, requiring in particular that the accommodation has at least two rooms and is assigned to the main residence for at least five years.

 

Extension of the amnesty for inactive companies:

The amnesty in favor of inactive companies, established by the 2023 Finance Law, is renewed in 2024.

 

 

This summary aims to present to the reader the main tax reforms brought by this law, offering an overview of the major changes made in the Moroccan tax landscape for the current year. For a more detailed and exhaustive analysis, please refer to the Finance Law 2024 and other amended laws. Please note that the information provided here does not constitute tax advice. For specialist and specific advice regarding your financial or tax situation, we strongly recommend that you contact us

The 2024 Finance Law introduces a series of crucial measures that reshape the tax landscape for Moroccan taxpayers. Discover the implications in this brief summary, which outlines the tax provisions introduced by this law.

 

I) Value Added Tax (VAT)

 

1) VAT withholding tax (RAS):

 

No issues regarding taxable capital goods and works: 

 

⚠️ VAT will now be withheld at source by customers for all suppliers of taxable equipment and works, who do not justify tax regularity by providing a tax regularity certificate issued by the tax administration dated less than 6 months.

Exceptions: Certain public sector entities will be exempt from this withholding obligation.

 

 

No issues regarding service delivery:

 

⚠️ Withholding tax of 75% of the amount of VAT for service providers by clients of public sector entities and for individuals dealing with private sector entities.

⚠️ Withholding tax 100% if there is no tax compliance certificate from suppliers.

 

 

Exceptions to the RAS:

Electricity and water distributed publicly.

Sanitation and meter rental.

Telecom operators.

Insurance brokerage agents.

Transactions ≤ 5,000 MAD (limit 50,000 MAD/month/supplier).

 

VAT credit refund:

Presumably to compensate taxpayers for the impact on their cash flow, the finance law provides for the refund of VAT credits following withholding at source. The operational details and effectiveness of this process remain to be clarified.

 

2) Other VAT-related measures 

 

Changes to VAT regulations:

Preservation of Investment Assets	The law reinstates the obligation to keep investment assets in a fixed asset account for 60 months, under penalty of repayment to the Treasury of the initial benefit.
Extension of VAT to Digital Commerce	The 2024 Finance Law includes in VAT online dematerialized services provided by foreign suppliers to local consumers.
Business Leaders' Solidarity on VAT	The law establishes solidarity for the collection and payment of VAT, involving any person exercising administrative or management functions and any effective beneficiary of unpaid VAT.
VAT Reverse Charge Scheme	This new optional scheme allows entities subject to VAT to calculate this tax on their out-of-scope or exempt purchases, simultaneously allowing them to deduct it.
Tax Regime for Real Estate Rentals and Investment Exemptions	Clarification of VAT rules for the rental of unfurnished premises for professional use and of the conditions for exemption of investment goods, they are subject to VAT when their acquisition or construction has been made with deduction or exemption from this tax.

Reorganization of VAT Rates:

 

Gradual reduction of the rate from 14% to 10%. 12% from January 1, 2024, 10% from January 1, 2025.	Insurance-related services	📉
Increases from 7 to 10%	Water to public networks, sanitation, rental of water meters (excluding certain operations).	📈
Gradual alignment of the VAT rate  16% from January 1, 2024, 18% from January 1, 2025, 20% from January 1, 2026.	Electricity	📈
Gradual alignment of the VAT rate  11% from January 1, 2024, 15% from January 1, 2025, 20% from January 1, 2026.	Electricity meter rental	📈
Gradual reduction from 14% to 10%. 12% from January 1, 2024, 10% from January 1, 2025.	Renewable energy sold by producers:	📉
Gradual increase from 7% to 10%. 8% from January 1, 2024, 9% from January 1, 2025, 10% from January 1, 2026.	Refined sugar	📈
Increase from 7% to 10%.	Economy cars	📈
Reduction to 10% over 3 years: 13% from January 1, 2024, 12% from January 1, 2025, 10% from January 1, 2026.	Urban and road transport of passengers and goods	📉
Increase to 20% over 3 years: 16% from January 1, 2024, 19% from January 1, 2025, 20% from January 1, 2026.	Other transport (excluding urban and road transport)	📈

 

VAT exemptions 

 

Everyday Consumer Goods:

With right to deduct: Pharmaceutical products, Domestic water, Sanitation services.

No right to deduct: Butter, Powdered milk, Canned sardines, Household soap, School supplies.

 

Mohammed VI Foundation:

The Mohammed VI Foundation for Science and Health benefits from a VAT exemption with the right to deduct.

 

Cooperatives:

Cooperatives offering services related to agriculture benefit from an exemption under regulated conditions.

 

Operating concessions upon import:

The VAT exemption is established up to the amount of VAT paid on importation for royalties and rights granted.

 

 

II) Corporate income tax (CIT)

 

Clarification of the conditions for reducing the corporate income tax rate from 35% to 20%:

Clarification regarding the conditions for the transition of the Corporate Income Tax rate from 35% to 20%. The application of the reduced rate of 20% is conditional upon maintaining net profit below one hundred million (100,000,000) dirhams for three (3) consecutive fiscal years. However, this rule does not apply if the net profit exceeding the 100 million dirham threshold results from non-recurring operations.

 

Mohammed VI Foundation for Science and Health

The 2024 Finance Law grants a permanent exemption from Corporate Income Tax (CIT) to the Mohammed VI Foundation for Science and Health for all of its activities, operations and the income derived therefrom.

 

Donations from taxpayers subject to corporate income tax, whether in cash or in kind, allocated to the Mohammed VI Foundation for Science and Health, are eligible for tax deductibility with regard to Corporate Income Tax.

 

III) Income Tax (IR)

 

Deductibility of social security contributions:

The 2024 Finance Law extends the right to deduct social security contributions paid under compulsory health insurance schemes (AMO) to professionals, self-employed workers and non-salaried workers engaged in a liberal activity.

 

Clarification of the calculation of capital gains from an inherited sale:

In the event of the sale of inherited securities, the acquisition price taken into account is the market value of these securities at the time of the deceased's death, as recorded in the inventory drawn up by the heirs. If this information is unavailable, the taxpayer may declare the market value on the date of the deceased's death, disregarding any joint ownership arrangements or other relevant factors. In the case of an automatic tax assessment, the tax will be based on the sale price, due to the lack of precise information.

 

Clarification of the calculation of capital gains tax following an inheritance:

Similar to the previous point, the acquisition price of inherited real estate is determined by its market value on the date of the deceased's death, as recorded in the inventory drawn up by the heirs. In the absence of this information, the taxpayer may declare the market value on the date of the deceased's death, without regard to any joint ownership arrangements or other factors.

Flat-rate deduction on artists' fees:

The gross amount of fees paid to artists, whether they work individually or as part of a group, will now be subject to a withholding tax of 30%. However, a flat-rate allowance of 50% will be applied before this withholding.

 

IV) Common measures 

 

Principle of the right to make mistakes:

The law establishes a mechanism allowing taxpayers to voluntarily correct their tax returns. They can request a statement of any irregularities found from the tax authorities, then file an amended return, pay the additional taxes without penalty, and include an explanatory note detailing the corrections made.

 

Simplification of the abuse of rights procedure:

To simplify the fight against tax avoidance, the 2024 Finance Law eliminates one level of appeal, maintaining only the national tax appeals commission. Taxpayers can request a preliminary consultation with the tax authorities regarding potentially abusive transactions.

 

Improvement of the review of the tax situation of individuals:

A simplified adversarial procedure is established to ensure the rights of taxpayers, including the sending of a notice of audit, an oral debate, a maximum audit period of 6 months, and communication of adjustments within 3 months of the closing of the audit.

 

Clarification regarding the non-accumulation of tax benefits:

The 2024 Finance Law repeals the provisions preventing the accumulation of certain tax advantages, in order to avoid any divergence of interpretation between the tax advantages of common law and those provided for by the investment charter, thus supporting the tax and investment policy.

 

V) Registration fees 

 

Alignment of rates for acts of allocation of premises or land by cooperatives and associations:

The 2024 Finance Law has established an alignment of registration duty rates for all deeds of allocation of premises and land by cooperatives or associations. 

• For constructed premises intended for residential, commercial, professional or administrative use, the rate has increased from 1.5 to 4%. 
• As for deeds allocating bare land, the rate has increased from 1.5% to 5%. 
• Furthermore, the transfer of the housing to the cooperator after full payment of the subscribed capital will be taxed at 4%.

 

Exemption from registration fees for the Mohammed VI Foundation for Science and Health:

The 2024 Finance Law exempted registration fees for acts related to the activities and operations of the Mohammed VI Foundation for Health Sciences, created under Law No. 23-23.

 

Framework for acts subject to registration:

Notaries, officials performing notarial functions, Adouls, Hebrew notaries and any person drafting or contributing to the drafting of a document subject to registration must now comply with two obligations:

• To present a certificate prior to the drafting of any document justifying the payment of taxes and duties related to the property for the year of transfer or sale, as well as for previous years.
• Include the article numbers relating to the housing tax and the municipal services tax in the documents drawn up.

VII) Other tax measures

 

Code for the recovery of public debts:

The possibility of electronically sending and notifying taxpayers of public debts is introduced. Provisions are amended to allow the Minister of Finance to grant remissions or reductions on late payment interest and penalties.

 

Discharge contribution for regularization of assets held abroad:

A discharge contribution is introduced for the voluntary regularization of assets held abroad before January 1, 2023. It requires the declaration of assets, their repatriation in foreign currency, and the payment of a discharge contribution varying between 2% and 15% depending on the case.

 

Voluntary regularization of taxpayers' tax situation:

A special measure is introduced in 2024 allowing for the voluntary regularization of the tax situation of individuals. It concerns taxable profits and income not declared before January 1, 2024, with a contribution set at 5% for undeclared liquid assets and acquired property.

 

Discharge contribution for check payment incidents:

A discharge contribution of 1.5% is set at the amount of unpaid checks issued before December 31, 2023, allowing the avoidance of penalties related to payment incidents. The maximum amounts are 10,000 dirhams for individuals and 50,000 dirhams for legal entities.

 

State aid for housing support:

The conditions for receiving state aid for main residences are being revised, notably requiring that the accommodation have at least two rooms and be used as the main residence for at least five years.

 

Extension of the amnesty for inactive businesses:

The amnesty for inactive companies, introduced by the 2023 Finance Law, is renewed in 2024.

 

 

This summary aims to present the reader with the main tax reforms introduced by this law, offering an overview of the major changes in the Moroccan tax landscape for the current year. For a more detailed and comprehensive analysis, please refer to the 2024 Finance Law and other amended laws. Please note that the information provided here does not constitute tax advice. For specialized and specific advice regarding your financial or tax situation, we strongly recommend that you consult a professional. contact us