Moroccan Business Group Proposes 20% Corporate Tax to Boost Economy

Bringing the corporate tax (IS) to 20% instead of 31% would, according to the CGEM, relaunch economic competitiveness and GDP growth. Applied over a 4-5 year period, this revision should be done progressively to reach 15% in the long term, thus imitating the success recorded in other countries.

"The experience of countries such as Mauritius, which applies a rate of 5.5%, has shown the effectiveness of such a measure. With such a rate, the country has become a real hub for foreign investors," said the vice-president of the confederation, Khalid Cheddadi.

For the president of the employers’ organization, Salaheddine Mezouar, the tax system should benefit the taxpayer and the State equally, by strengthening capital through the injection of the exempted third. The CGEM has also proposed the abolition of the minimum contribution and tax neutrality as part of restructuring operations that do not generate any profit for the taxpayer.

In addition, the Income Tax should undergo a overhaul by deducting school fees borne by households. Contributions to life insurance contracts and health contributions for the self-employed should also be deducted from the IR tax base, according to the Moroccan employers’ organization.