MRE Transfers Morocco Tax Audit: What You Need to Know

The General Tax Directorate has reportedly strengthened its use of communication rights with banks in recent months. Controls would target in particular personal accounts recording financial movements difficult to explain in light of declared income.

On Bladi.net : Morocco Tax Authority Cracks Down on Undeclared Income and Gift Claims

This is not a new law. The General Tax Code already allows the administration to request information and documents from third parties, including banking institutions, as part of a tax audit.

A transfer alone is not enough to trigger taxation

A money transfer from abroad to Morocco is not taxable by its mere existence. Tax authorities’ attention can especially be drawn when large or regular sums resemble professional, rental or commercial income that has not been declared.

A Moroccan expatriate can thus transfer their savings, help their family or finance the purchase of property. But the recipient may be called upon to explain the origin and nature of the funds when the observed movements do not match their known tax situation.

People concerned therefore have an interest in keeping useful supporting documents: statements from the original account, pay slips, deed of sale, loan agreement or proof of family support.

On Bladi.net : Tax Crackdown Targets Morocco’s Hidden Wealth

The current change lies in the intensification of checks and in broader targeting of personal accounts based on risk analysis. The administration would therefore not have free and permanent access to all bank accounts.