EU Keeps Morocco on Tax Haven Gray List Despite Reforms

According to l’Économiste, the EU considers the export tax regime, as well as the free zone regime alongside the Casablanca Finance City (CFC) status, to be harmful and maintains Morocco on its gray list of tax havens. For its part, the Moroccan government considers this decision "a victory, because Europe recognizes the compliance of the tax rules for exports and industrial acceleration zones with good governance standards".

In this regard, the newspaper recommends waiting for the publication of the final evaluation of the Casablanca Finance City regime by the OECD, the only organization authorized to rule on financial centers. This publication, expected within a few months, by the end of 2020 at the latest, will determine "whether or not Morocco should be kept on the gray list of tax havens".

The government, for its part, is optimistic about the compliance of the tax regime of the Casablanca financial center. However, the OECD will extend its due diligence to other provisions.

It should be noted that the abolition of preferential tax regimes began two years ago, with the abolition of the status of offshore banks and holdings in the 2019 Finance Act. It continued with new concessions on three components of the tax system: the exporter regime, the free zones and the CFC status. This is in addition to the abolition of the concept of free zones reclassified as industrial acceleration zones.