Morocco Offers Tax Amnesty to Real Estate Developers in New Agreement

The flat-rate tax is between 1 and 2.5% depending on the turnover, specifies L’Economiste. Subscribing to a corrective declaration before December 31, 2019 for the four unbarred fiscal years is the sine qua non condition to benefit from this system.

Moreover, the payment of the tax concerned can be divided into two installments: 40% before December 31, 2019 and 60% before July 30, 2020. The agreement focuses on irregularities in terms of corporate tax, VAT and the personal situation of shareholders. However, subscription is optional.

The same source indicates that digitization has made cross-checking easier. This allows the tax authorities to detect the gaps between the turnover figures declared by certain developers and those observed by their auditors.

As for the developers who have been singled out, they have been granted a one-month deadline to respond through a corrective declaration. Similarly, if it turns out that there is evaded tax, they will pay everything while benefiting from an exemption from penalties and fines. However, they will not be exempt from a possible audit even if they respond within the time limits, it is pointed out.