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Morocco - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Since January 1st, 1996, corporate income tax rate is 35% (the former rate of 39.6% apllies to insurance companies and to banking institutions). Generally, the minimum tax is the greater of 1,500 Dirhams or 0.5% of annual turnover. Non resident companies can, under certain conditions, opt for an alternative tax at the rate of 8% of the amount of their contract.
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Taxe rate on long-term capital gains |
In Morocco, capital gains is taxed at the rate of 35%.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
A withholding tax whose rate amounts to a maximum of 10% concerns dividends and gives a right to an equivalent tax credit.
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Tax rate on branches |
Branches are taxed in the same way as the other companies.
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
Named as the General Income Tax (IGR), its progressive rate varies from 0% to 44%. The taxable global income is established by one or several net incomes corresponding to the various income brackets subjected to the General Income Tax. The annual statement of the global income must be handed to the fiscal administration before May 1-st of every year.
| Inferior or equal to 20,000 MAD | 0% | | From 20,001 to 24,000 MAD | 13% | | From 24,001 to 36,000 MAD | 21% | | From 36,001 to 60,000 MAD | 35% | | Beyond 60,000 MAD | 44% |
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Tax deductions or
other allowances |
There are several types of deductions attributed to taxpayers in Morocco. For further details concerning the nature of the deductions, you must contact the fiscal administrations of every region.
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VAT rates
Standard rates |
The rate of common law is 20%.
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Reduced rates |
Reduced rates vary from 7% to 14% according to products and services affected.
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Other important taxes
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Name of tax |
Rate |
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Tax on royalties
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10%
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Tax of urban property
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13.50%
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Tax on transfers
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0.25% to 6%
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License
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5% to 30%
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Succession and donation
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1%
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Accounting
Introduction
The introduction in Morocco of the French accounting plan in 1957, more precisely of its rules of evaluation, was made by the order of the sub-Secretary of State of Finances n?87665 of March 05, 1965 modified and completed by order of the Minister of finances n?90-69 of 31/12/1969. Since then, the Moroccan economy has evolved and this evolution has given birth to a common accounting and financial language in order to develop more economic relations between companies and the rest of the world. A reform was necessary and has been materialized in 1992 by the application of the general code of the accounting normalization.
General accounting principles
The structure of accounts in Morocco is inspired by the French model.
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Obligations and publications
Under reserve of the provisions foreseen in articles 19,20,21, people subjected to the present law have to establish annual statements in the close of the fiscal year, on the foundation of the accounting recordings and inventory redrawn in the account book, the and the inventory book.
These statements include the balance sheet, the profit and loss account, the cash flow statement, the funds statement and some additional information.
Certification and auditing
The balance sheet describes separately the assets and liabilities of the company.
Professionals and representative organizations
The Ministry of Finance.
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Last modified in
January 2003
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