Morocco’s Parliament Approves 2022 Finance Bill with Key Tax Changes

It was by 206 votes in favor, 67 against and no abstentions that the deputies approved the 2022 PLF. Before the actual vote, the Minister of Economy and Finance, Nadia Fettah Alaoui, indicated that out of the 129 amendments proposed, 31 were accepted and relate to the expansion of the base for applying the social solidarity contribution on profits for the year 2022, the decrease in the corporate tax (IS) rate for industrial companies from 28% to 26% (instead of 27%).

It also involves the reduction of the minimum tax rate from 0.45% to 0.40%, the decrease in the profit margin coefficient applied to the hairdressing and aesthetics profession from 30% to 20% and the tobacco vendor profession from 4% to 3%, in addition to including the butcher among the "trade and private activities" category to benefit from a rate of 4%.

The accepted amendments also include the extension of the income tax (IR) exemption for the first-time salary paid to an employee until December 31, 2022.

It is also a question of the gradual implementation of domestic consumption taxes (TIC), applicable to electrical articles, devices and equipment, and the reduction of the TIC components applicable to electronic devices and vehicle batteries.

From Nadia Fettah Alaoui’s presentation, it should be noted that the 2022 PLF has taken into account three priority sectors, namely employment, health and education. The government, he says, places social sectors and the preservation of citizens’ purchasing power at the heart of the orientations of this draft law.