Morocco’s Tax Amnesty Deadline Approaches as Year-End Nears

In order to allow taxpayers to regularize their situation with the tax authorities before the new year 2021, a "rectifying finance law" has been put in place allowing "a certain extension of the deadlines initially set for these measures".

Thus, "thanks to the amnesty, the tax administration offers the taxpayer the possibility of regularizing his tax situation at a price lower than the value of the unpaid income tax, administrative penalties and interest," said the chartered accountant, statutory auditor and president of the Legal and Tax Commission of the Club of Moroccan Managers, Badreddine Ed Dihi, based on "the measure provided for in Article 247 XXVIII of the General Tax Code (CGI) and which wants taxpayers to be excluded from control," notes the MAP.

Regarding the normalization of assets held abroad, which will end at the end of December 2020, there is the possibility of subscribing to a spontaneous declaration without penalties of assets abroad belonging to Moroccan tax residents. Thus, "this type of measure can hold several advantages for public finances," noted Ed Dihi, noting however that "these devices have limits", since the price paid by the taxpayers who adhere to a measure does not include the penalties/increases that would be related to an audit, and, in some cases, may be lower than the amount of unpaid income tax.