Morocco Cracks Down on Undeclared Cash with 5% Tax Amnesty Program

This is a preferential regime established on an exceptional basis by the Finance Act for the year 2020. The contribution rate is set at 5% of the amount of liquid assets held, in cash in the form of banknotes to be deposited with a bank, or the amount of liquid assets already deposited in bank accounts. This contribution concerns natural persons, who have their tax domicile in Morocco, whose income or profits come from a professional or agricultural activity, and who are in an irregular situation with regard to the tax obligations provided for in the General Tax Code (CGI).

The regularization is carried out, first, by the deposit of the liquid assets, with a credit institution, and then by the filing of a declaration, as indicated by the DGI in its circular note.

As for the penalties applicable to the natural persons concerned who do not comply with the conditions and obligations provided for, they cannot benefit from the provisions of this contribution and remain subject to the provisions of common law provided for by the CGI.

Credit institutions with the status of a bank and who do not pay the amount of the contribution within the time limit incur, in addition to the payment of the principal of the contribution, the application of the penalties in terms of collection provided for by the CGI.

The persons concerned, according to the note, have a period from January 1 to June 30, 2020, to file the declaration and pay the amount of the aforementioned contribution. This deadline may be extended for a period of two months, renewable only once.