Morocco Awaits EU Decision on Tax Haven Status Amid Pandemic Delays

Moroccan officials are certain: the Kingdom is living its last moments on the gray list. According to a press release from the Ministry of Economy, Finance and Administration Reform last May, Morocco had received a new strong signal from the EU Council, with regard to the reforms of the Kingdom’s corporate regime and free trade zones (FTZ), in line with Brussels’ legislation and expectations.

However, the schedule of meetings and the Covid-19 pandemic could delay the final decision until early 2021 instead of the expected October, according to an anonymous source at the OECD.

In the meantime, two major events can be taken into consideration: the preparation of the 2021 Finance Act expected in the second half of October. The 2021 Finance Bill may bring out new tax reforms, but the principle of non-retroactivity raised by Morocco is struggling to pass.

There is also the entry into force of the banking exchange system next January on which the government is counting to counter the bad taxpayers. Except that here, the Kingdom must transmit its data. In short, everything depends on the 2021 Finance Act, the entry into force of banking exchanges, and changes to the CFC regime.

The important thing in the end is what Morocco gets out of it in terms of attractiveness; Morocco considered as an important destination on the continent for European but also Asian investments, eagerly awaited.