Morocco Imposes Fines for Late Self-Construction Cost Declarations

People engaged in "Self-construction" projects must declare the cost of their work before the end of this month of February. This declaration must be "accompanied by several documents: a statement of invoices, as well as a certificate issued by an architect, unless the construction is carried out under a "turnkey" contract," reports Hespress. Failure to comply with this obligation results in: the application of a fine of 2% of the total cost of the construction in accordance with the legal provisions. A fine of 500 dirhams will be imposed on offenders who pay their declaration after the deadline, but within a maximum period of 30 days.

In addition, "natural persons, real estate companies, cooperatives and housing associations" must also pay the social solidarity contribution, corresponding to the construction of a property for their personal use, as required by Article 278 of the General Tax Code. The payment of this contribution will be made to the tax collector of the area where the construction was carried out, and at the time of submitting the declaration of the cost of the construction.

Several elements must accompany the declaration. These are the reference of the invoice or accounting documents relating to the construction, if it was carried out under a "turnkey" contract, the name and surname of the supplier if it is a natural person, the address if it is a legal person, the tax identification number, the unique identification number of the company, as well as details of the goods, works and services carried out. Not to mention the amount of the construction, excluding VAT, the amount of the tax mentioned on the invoice, the payment terms and the corresponding references, a certificate issued by a qualified architect, detailing the cost of the work carried out in case the work was carried out without a "turnkey" contract.

In accordance with Article 275 of the General Tax Code, the social solidarity contribution, which applies to the construction of housing for personal use, is calculated as follows: 60 dirhams per square meter for areas ranging from 301 to 400 square meters, 100 dirhams for those less than 500 square meters, and 150 dirhams for areas exceeding this limit. A "unit" is defined as any indivisible dwelling for which a building permit has been issued, the same article specifies.