Morocco to Tax Netflix, Spotify, and Other Digital Giants in 2024

The taxation of digital giants is now a reality in Morocco. According to the 2024 Finance Act, Netflix, Spotify, Amazon Prime and other online gaming apps are required to register in Morocco, make their turnover public and pay the relevant taxes, reports L’Économiste. In detail, non-resident service providers without an establishment in Morocco will have 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 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.

The remote services subject to VAT include the provision and hosting of computer sites, remote maintenance of programs and equipment. Other services: the provision of software and applications and their updates, the provision of digital content (music, films, online games, gambling, images, videos, texts, information, etc.), subscription to cinematographic and television platforms dedicated to Video on Demand (VOD) services, databases or their provision, as well as the remote provision of training, consulting or support services.

By proposing new tax obligations for foreign companies providing remote services, the Moroccan government is in line with a global trend where many countries are working to adapt their tax regulations to take into account the digital economy. Thus, it not only regulates the activities of digital giants, but also ensures a fair tax contribution.