Moroccan Expats Required to Declare Home Country Bank Accounts in Tax Returns

Through the multilateral convention signed in June 2019 for the implementation of OECD tax convention measures (BEPS), Morocco is adhering to the automatic exchange of banking data as of September 2021. This measure is already prescribed by the 2020 Finance Act for fiscal years opened as of January 1, 2021, reports Eco actu, adding that as part of the forecasts for this automatic BEPS exchange, Morocco had put in place two liberating contributions to allow Moroccans in Morocco to bring themselves up to date.

Even if Morocco had requested an extension to 2022 for the start of this exchange, Moroccans residing abroad and having assets in Morocco must automatically regularize their tax situation with the tax authorities of their country of residence. As for those residing in the United States of America, the operation is already regularized, as the Foreign Account Tax Compliance Act (FATCA) has been in effect since July 2014, in order to combat tax evasion involving accounts of American citizens or residents holding financial assets outside the United States. For MREs residing outside the United States of America, they have the obligation to include their bank accounts held in Morocco or elsewhere in their tax returns in 2021 for the 2020 fiscal year.

However, those who have not regularized their situation by the start in September 2021 will be considered in a situation of tax fraud and heavily penalized. These penalties can reach up to 7 years in prison and a fine of 3,000,000 euros, or even double. The declaration also takes into account investments, capitalizations, assets and others. Thus, it is important for MREs to manage this exchange with the utmost rigor. Moroccan banks are also required to raise awareness among their clients residing abroad about the penalties incurred.

But the best thing would be to regularize and not count on a possible OECD reprieve. This is the best way to protect oneself from heavy penalties.