Morocco Faces Scrutiny Over Tax Incentives for Foreign Companies

The situation is not opportune for tax experts, who are still faced with the debates initiated by the employers’ association and certain NGOs in relation to the tax burden on the taxpayer. According to Le360, citing the newspaper Aujourd’hui le Maroc, social demands leave little room for maneuver in negotiating the advantages granted de facto to foreign companies established in Morocco.

The 2019 Finance Bill has, however, seen the implementation of measures in line with the recommendations of the European Union, in particular the FATCA agreement which allows the exchange of banking data, and the removal of tax advantages granted to offshore companies (IS, IR and VAT exemptions).

The European Union has placed the kingdom on the grey list of tax havens, pending a overhaul of the Moroccan tax system to meet European standards. The Skhirat Conference should pave the way for the inclusion of new measures in the next 2020 Finance Bill, the same source reports.