Moroccan Tax Authority Denies Agreement with Real Estate Developers on Flat-Rate Tax

No "gentlemen’s agreement" has been concluded with the Federation of Real Estate Developers (FNPI) and no document has been signed, an authorized source within the Directorate General of Taxes (DGI) told Medias24.

In other words, the information that a contract would have been concluded between these two structures to allow real estate developers to pay a flat-rate tax of 1% to 2.5% depending on the turnover, in order to regularize their situation with regard to IS and VAT, is false.

According to the alleged agreement, these developers would benefit from this system provided they subscribe a corrective declaration before December 31, 2019 for the four unbarred fiscal years.

The same source recalls that relations have always existed between the DGI and all professions, including real estate developers, which are exclusively based on the implementation of texts and laws.

There is indeed a legal framework that allows any taxpayer to voluntarily proceed with a corrective tax return if their previous returns were tainted with irregularities... This is Article 221 bis-3e of the General Tax Code and Circular 717/2011 of the DGI.

From 2020, the voluntary corrective declaration will be extended to companies in all sectors of activity, according to the forecasts of the Finance Bill (PLF 2020).