VAT in Morocco: Quick summary

Tax ID in Morocco

VAT on real estate transactions in Morocco

Land development operations (VAT)

VAT on land development operations  From a VAT standpoint, the development and servicing of building lots is deemed to be a real estate operation The General Tax Code (GTC) defines a land developer as “any person who carries out development or servicing work on building lots with the purpose of selling it in its entirety […]

VAT on services

Tax Treatment of VAT on services Article 89 of the General Tax Code lists providing services amongst taxable transactions. Provision of services is a very broad concept. Indeed, it includes all payable transactions that do not entail a delivery of goods. Moreover, VAT on services also applies to transactions and activities that fall within the […]

Tax audit in Morocco

A tax audit (or tax review) is a critical examination, conducted by an independent professional to assess the tax situation of a company. Indeed, in Morocco as elsewhere, it is a structured approach based on : First, the identification of the tax risks to which the company is exposed; Second, conducting controls, cross-checks and verifications […]

Value Added Tax in Morocco (VAT)

Value Added Tax (VAT) is a consumption tax applied to the purchase of goods or services. Consumers are subject to VAT which is applied ad valorem to the purchase price. It does not apply to corporate income like the CIT. It follows a fragmented payment system. Value-added tax is levied on a product when value […]

Taxation of hotels in Morocco

How does taxation of hotels work in Morocco? What tax advantages do hotels and touristic establishments benefit from ? Hotel companies and tourist establishments in Morocco benefit from tax incentives. Indeed, these establishments benefit from two main advantages: First: a reduced VAT rate Second: a reduction in corporate income tax on sales in foreign currencies […]

Professional Tax in Morocco

The Professional Tax (Taxe Professionnelle, formerly called “Patente“) is a Moroccan local tax payable by all businesses. Professional tax is applicable to all forms of companies (PLCs, LLCs, Partnerships…) as well as branches. Professional Tax – Scope of application First, note that every legal or natural person that carries out a professional activity in Morocco […]

Dividends in Morocco: Withholding tax

Dividends in Morocco The term “Dividends” refer to the profits that a company distributes to its shareholders or partners. Dividends are distributed to shareholders in proportion to their contributions in the company’s share capital. The payment of dividends can be in cash or in the form of additional shares (stock dividends). When dividends are distributed […]