Morocco Unveils Tax Relief Measures in New Local Taxation Law

The new law 07-20 on local taxation, came into effect on January 1, 2021, with modifications and an amnesty on local taxes. Thus, apart from taxes under the jurisdiction of the General Directorate of Taxes (DGI), the relief concerns penalties, fines, late payment increases and collection costs related to local taxes and duties, the urban tax and the professional tax, reports L’Économiste, adding that the final deadline to benefit from this amnesty is set for June 30, 2021.

The administration automatically grants the exemption to the taxpayer and without formality, once he has paid the full principal of the debts. Only taxpayers who are only liable for unpaid fines, penalties, increases and collection costs as of December 31, 2020, will benefit from the total relief, and without any necessary steps.

In addition, the State is resetting the meter on local tax debts, urban tax and professional tax for amounts less than 200 dirhams as of December 31, 2020 and if the remaining amount to be reimbursed is less than or equal to 200 dirhams.

It should be noted that the new law on local taxation has increased the minimum amount of taxes and duties that must be issued at the local level, notes the daily, noting that among the new amendments to the law is the application of the tax on construction operations, undeveloped urban land, building restoration projects, rehabilitation of non-compliant buildings and demolitions requiring a building permit.