Morocco Plans New Real Estate Tax System, Allowing Taxpayer Input

"I myself criticized the old version of the reference, because it was designed by the administration for the administration. Many criticized the DGI for being both judge and party. Today, our approach is to let the market define this reference. If a database is to be used, it will have to be neutral and independent," said Younes Idrissi Kaïtouni, Director General of Taxes, during the ftour-debate organized by L’Économiste last week.

The tax administration is working to implement this project, the objective of which is to guarantee equity between all stakeholders. "The decision is not simple, but it is essential that the stakeholders involved can guarantee justice and transparency for all parties. If we have managed to establish a fair framework for transfer pricing, we can do the same for the real estate sector," he added.

In this context, the Moroccan tax authorities have set up an international database in order to establish comparables in terms of transfer pricing before making the necessary adjustments. "This is a major advance, which is part of the continuity of the transfer pricing verification guide," said Kaïtouni, adding that due to professional secrecy, the tax authorities cannot "disclose the sales contract of another similar property to justify a tax revision."

The new reference offers taxpayers the possibility to challenge the prices and propose a value to the tax administration, which is free to accept or challenge it. "This system will establish a factual basis for discussion and reduce disputes between taxpayers and the tax authorities," said the official.