The main taxes
- Corporate income tax: levied on the profits of companies limited by shares and of public institutions carrying on a profit-making activity, according to a progressive scale by profit bracket.
- Personal income tax: business income, salaries, property income, income from securities and real estate gains.
- Value added tax: industrial, commercial and craft transactions and the supply of services, with a deduction system.
- Registration and stamp duties: deeds of sale of real property, transfers of shares and of goodwill (fonds de commerce), leases.
Tax audits and taxpayer safeguards
- The tax authorities have a right of audit and must serve a notice of audit before commencing an audit of the accounts.
- The reassessment procedure is adversarial: first notification, taxpayer's response, second notification.
- The taxpayer may refer the matter to the local taxation commissions and then to the National Tax Appeals Commission before bringing court proceedings.
- Tax litigation falls within the jurisdiction of the Administrative Court.
Limitation and recovery
The tax authorities' right of reassessment may in principle be exercised for four years. Recovery is governed by the Public Debt Recovery Code, with the possibility of obtaining a deferral of payment by providing security.
Key articles
A lawyer's points to watch
- The Code is amended each year by the Finance Law: always check the version applicable to the financial year concerned.
- Time limits for responding to reassessment notices are short and run from receipt: a late response amounts to tacit acceptance.
- A deferral of payment requires the provision of security, failing which recovery continues despite the objection.
The English text on this page, including the quoted articles, is an unofficial translation. Information sheet prepared by Maître Lahfaia Law Firm, Rabat. It does not constitute legal advice. Only the text published in the Official Bulletin of the Kingdom of Morocco is authoritative; the articles cited may have been amended since this sheet was written.