January 1, 2024 – 12:00 – Economy
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In Morocco, several important fiscal measures have been announced for the year 2024 as part of the budget law, which were published in the Official Gazette of December 25. Here is an overview of the most important changes.
The changes in VAT are aimed at adjusting exemptions and applicable rates. According to the 2024 Budget Law, certain basic products such as school supplies, butter of animal origin, canned sardines, milk powder and household soap can be exempt from VAT. Furthermore, the VAT exemption is extended to services provided remotely by companies not established in the kingdom to customers in Morocco. In addition, a gradual harmonization of VAT rates is planned for 2026, which will affect various sectors such as water, electricity and transport.
Also read: Morocco: changes in water and electricity bill payments
With regard to corporate tax, adjustments are planned to regulate the application of the 35% rate in 2024. Companies with a net tax result of less than 100 billion dirhams for three consecutive financial years, where profits exceed this amount due to non-regular income, are not affected by this measure. In addition, the legislation provides a permanent exemption from Corporate Tax for the Mohammed VI Foundation for Science and Health.
For Income Tax, the 2024 Budget Law makes significant adjustments, including the deductibility of social contributions to compulsory health insurance and pension for professionals, self-employed people and non-employees subject to Income Tax under the real or simplified net income regime. The fixed exemption percentage for gross remuneration to artists will also change from 40% to 50%.
Also read: Tax evasion in Morocco: 2% accounts for 80% VAT revenue
Regarding registration rights, the 2024 Budget Law introduces substantial reforms, especially regarding the allocation of premises or land by cooperatives and housing associations to their members. The harmonization of registration fees is an important progress and implements proportional duties currently in force, namely 4% for premises and 5% for land.
2024-01-01 11:00:00
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