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Morocco Unveils Tax Amnesty Plan to Boost Economy and Repatriate Foreign Funds
Monday 21 October 2019, by
As part of the 2020 Finance Bill, a new provision proposed by the Government provides for an amnesty for holders of funds abroad. This measure will allow a GDP growth rate of 3.7% and reduce the budget deficit to 3.5%.
The new incentive measure, which aims to reduce capital flight and repatriate funds deposited abroad, will be effective from January 1 to October 31, 2020, and will allow a 5% tax amnesty, in case of deposit of 75% of foreign currency funds and 25% in Moroccan dirhams.
A similar provision, adopted by the Government in 2014, had allowed the repatriation of 27.8 billion dirhams (3 billion dollars), or 8.5 billion dirhams in cash, 9.5 billion dirhams in real estate and 9.8 billion dirhams in shares and securities.
It should be remembered that the penalties applied on capital flight were in the order of six times the amount diverted, in addition to a prison sentence of one to five years. In addition, this new provision should be endorsed by Parliament, in the course of next week.