Taxes – Accounting

Tax Rates | Accounting Rules
Tax Rates
Consumption taxes

Nature of the tax

Value Added Tax (VAT)

Tax rate

20%

Reduced tax rate

There are three reduced rates of 7%, 10% and 14% according to the products and services concerned.
Basic food products, books and newspapers, certain loans and financial instruments are exempt from VAT.Other consumption taxes

Domestic consumption taxes on alcohol, tobacco, sugar, oil products etc.

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Corporate taxes
Tax rate
|Normal rate |30% |
|Rate applying to leasing companies and credit institutions |37%|
|Possibility opened to Building and Public Works enterprises or Engineering enterprises |8% of their contract amount |

Tax rate for foreign companies

VAT refund for nonresidents is possible under certain conditions. Access the Ministry of Economy and Finance website on fiscal issues.

Capital gains taxation

Long term capital gains are taxed in Morocco at therate of 30%.

Main allowable deductions and tax credit

There are many deduction possibilities. For more information go to Invest in Morocco website Investments Management.

Other corporate taxes

A 6% registration duty and a 1% real estate tax is levied at the time a real estate is purchased.
A 3% registration duty is imposed on the sale of shares in non-listedcompanies.

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Individual taxes
Tax rate
|Income is taxed at progressive rates. |From 0 to 38% |
|up to MAD 30,000 |0% |
|from MAD 30,001 to 50,000 |10% |
|from MAD 50,001 to 60,000 |20% |
|from MAD 60,001 to 80,000 |30% |
|from MAD 80,001 to 180,000|34% |
|above 180,000 |38% |

Allowable deductions and tax credit

There are several types of deductions assigned to taxables in Morocco. To know the nature of all the deductions, consult the tax authorities of each region or of the central government.

Special expatriate tax regime

No special provisions.However, Morocco has signed a non-double taxation agreement with the majority of the countries.

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Double taxation treaties

Countries with whom a double taxation treaty have been signed

See the list of agreements signed

Withholding taxes

Dividends: 10%, Interest: 10%, Royalties: 10%. All rates may be reduced in the case of a tax treaty with Morocco.

Bilateralagreement

[pic]We can indicate you which local taxes are applied to your product.

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Sources of fiscal information

Tax Authorities

Inland Revenue

Other domestic resources

Tax Code

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Accounting Rules

Tax year

The tax year begins on January 1 and ends on December 31 of the same year.

Accounting standards

Moroccan companies areobliged to progressively adopt IFRS international standards.

Accounting regulation bodies

National Council of Accounting

Accounting reports

The structure of accounts in Morocco is drawn on the French model.
Subject to provisions envisaged in articles 19,20,21, the people subject to this law must establish annual summary reports, at the end of the financial year,based on accounting and inventory records drawn in the daybook, the general ledger and the inventory book.

These summary reports include:
– the balance sheet,
– the incomes and expenses account,
– the management sales report,
– the funds flow statement,
– the additional information report.
They form an integral whole.

Publication requirements…