Morocco Proposes New Tax Rules for Digital Giants Like Amazon, Netflix

As part of a global trend where many countries are working to adapt their tax regulations to take into account the digital economy, the Moroccan government is proposing new tax obligations for foreign companies providing remote services in order to regulate the activities of digital giants such as AWS (Amazon Web Services), Netflix and Airbnb, on the one hand, and to ensure a fair tax contribution, on the other hand, reports Challenge. The team led by Aziz Akhannouch intends, through these new tax obligations, to strengthen the collection of tax revenues in Morocco, which will contribute to generating additional tax revenues for the kingdom. Another advantage: to promote fairer competition between local and foreign service providers.

What are the implications? From now on, it will be a question for non-resident service providers without an establishment in Morocco to register on a dedicated electronic platform and obtain a tax identification number if they offer dematerialized services to Moroccan customers, according to the provisions of the draft law. They will also be required to submit a monthly declaration of their turnover generated in Morocco and to pay the corresponding tax, without the possibility of a tax deduction. They will also have to keep an electronic register of the services provided, to be kept for a period of ten years.

These new tax obligations will not be without consequences on the activity of non-resident remote service providers. The collection of the tax without the possibility of a tax deduction can lead to an increase in costs for these providers. Their services will therefore be more expensive for Moroccan consumers.