Morocco’s Tax Amnesty Program Nears Deadline for Undeclared Income

December 31, 2024, the deadline. This is the deadline for individuals wishing to regularize their unjustified income and their tax situation with a reduced tax rate within the framework of an exceptional tax amnesty measure in effect from January 1 to December 31, 2024. Taxpayers can voluntarily update their tax situation. The advantage of this regularization is that they have the possibility to declare the undeclared income of the years prior to 2024, while benefiting from a reduced withholding tax, set at the advantageous rate of 5%.

A penalty in case of late regularization will be imposed on taxpayers. They will be exposed to an automatic taxation, reaching 38%. This exceptional measure had been introduced by the 2020 Finance Act before being strengthened by that of 2024. The measure concerns liquid assets deposited in bank accounts; liquid assets held in cash in the form of banknotes; movable or immovable property acquired and not intended for professional use and current account advances, the operator’s accounts and loans granted to third parties.

As of December 20 or 25, the Directorate General of Taxes will no longer be able to process regularization requests, overwhelmed by the influx of last-minute files, according to a source at Médias24. Thus, the possibility is given to taxpayers to pay the 5% levy directly at the bank before the deadline.