Morocco Cracks Down on Vehicle Tax Evasion with New Transfer Rules

As of January 1, 2021, no vehicle transfer will be possible without prior payment of the vehicle sticker. This measure aims to ensure transparency in car transactions, particularly used ones, which will allow the tax authorities to recover a considerable shortfall. Under this new measure, Article 263 of the General Tax Code (CGI) will stipulate that "no transfer of a vehicle subject to the special annual tax on vehicles may be made in the name of the transferee, unless it is previously proven that the tax for the current tax year and the non-prescribed years has been paid or that this tax is exempt."

As for the vehicle sticker rate for vehicles whose total laden weight or maximum laden weight towed is less than or equal to 3,000 kilograms as well as four-wheel drive (4x4) vehicles not intended for professional use regardless of their weight, they remain unchanged. The TSAV amounts to 350 DH for vehicles with a fiscal power of less than 8 horsepower (HP), 650 DH (from 8 to 10 HP), 3,000 DH (from 11 to 14 HP) and 8,000 (equal to or greater than 15 HP). The rate is set at 700 DH (fiscal power less than 8 HP), 1,500 DH (from 8 to 10 HP), 6,000 DH (from 11 to 14 HP) and 20,000 DH (equal to or greater than 15 HP).

As for the penalty and surcharge rates, they will not be modified during the next year.