Morocco Unveils New Tax Amnesty for Offshore Assets in 2024 Budget

A one-year period is granted to natural and legal persons having a registered office or tax domicile in Morocco and holding assets abroad to subscribe to the declaration and pay the liberating contribution related to the voluntary regularization of assets and liquidity held abroad. The declaration period runs from January 1 of next year until December 31 of the same year, according to the 2024 budget. The foreign exchange offenses covered by this contribution are those provided for by Dahir No. 1-59-358 of 14 Rabii II 1379 (October 17, 1959) relating to assets abroad or in foreign currencies, but also those provided for by the General Tax Code and which are not the subject of foreign exchange disputes, reports Le Matin. Persons who have already benefited from the liberating contribution or the voluntary regularization concerning the assets and liquidity held abroad under previous Finance Laws are also targeted by this operation.

The persons concerned are required to declare their assets and liquidity held abroad, repatriate the foreign currency liquidity and sell at least 25% of this liquidity on the Moroccan foreign exchange market against dirhams, with the possibility of depositing the balance in foreign currency or convertible dirham accounts with banks based in Morocco. The declaration to be made to the banks must be accompanied by documents justifying the acquisition value of the assets and the latest bank statements showing the amount of liquid assets. The contribution rate is set at 10% of the acquisition value of real estate held abroad and the subscription or acquisition value of financial assets and securities and other equity or debt securities held abroad for individuals and legal entities who have not benefited from the liberating contribution. This rate is set at 5% of the amount of foreign currency assets repatriated to Morocco and deposited in foreign currency or convertible dirham accounts and at 2% of the amount of foreign currency liquidity repatriated to Morocco and sold on the Moroccan foreign exchange market against the dirham.

The 2024 budget sets the contribution rate at 15% of the acquisition value of real estate held abroad and the subscription or acquisition value of financial assets and securities and other equity or debt securities held abroad for persons who have already benefited from the liberating contribution or regularization. This rate is 3% for foreign currency liquidity repatriated to Morocco and sold on the Moroccan foreign exchange market against the dirham and 7.5% of the amount of liquid foreign currency assets repatriated to Morocco and deposited in foreign currency or convertible dirham accounts.

Persons concerned who have subscribed to the liberating contribution benefit from the guarantee of anonymity covering all operations carried out during the period of this regularization, but also from the non-application of sanctions relating to foreign exchange offenses, as well as tax offenses. Other benefits: the payment of this liberating contribution frees the person concerned from the payment of penalties relating to violations of foreign exchange regulations and the payment of income tax or corporate tax as well as the fines, penalties and increases related to them for failure to comply with the declaration, payment and payment obligations provided for in the General Tax Code.