Morocco Approves Tax Reforms for 2020, Including Corporate and Income Tax Changes

L’Economiste outlines the key points of the tax amendments that have been approved by the House of Representatives. Regarding corporate tax (IS), the representatives opted for a five-year tax exemption for offshoring. On the other hand, regarding the transfer of intangible and financial assets within the same group of companies, tax neutrality has been approved.

Regarding income tax (IR), the trend has gone towards the flat-rate regime, which takes into account taxpayers whose turnover does not exceed 2 million dirhams for industrial and craft professional activities and 500,000 dirhams for service providers.

Several exemptions are to be noted, including the one on the monthly gross internship allowance capped at 6,000 dirhams. There is also "the introduction of the exemption before the expiration of the 6-year period, of the operations of the transfer of a building or part occupied as a main residence by its owner," the same source indicates.

Public utility non-governmental organizations (NGOs) are well treated, notes L’Economiste, which mentions the extension of the exemption of the assets that revert to them, as well as the free transfers of their assets and property. In addition, four amendments govern VAT measures. These include VAT on the right to deduction and that relating to the import applicable to medicines for the treatment of infertility and multiple sclerosis.

Several other interesting measures can also be noted. We can mention, among others, the exemption from acts of acquisition of real estate by the beneficiaries of rehousing under the Slum-free Cities program or the minimum contribution reduced to 0.6% for companies in deficit for two consecutive fiscal years.