The Moroccan government has unveiled its proposed budget plan for 2027, which includes a range of tax reforms aimed at improving the business environment and promoting economic growth. The plan, which was published in a note by Challenge Hebdo, outlines several key measures that are expected to have a significant impact on the country's tax system. These measures are designed to simplify the tax code, reduce tax rates, and provide incentives for investment.
One of the key measures proposed in the plan is the introduction of a new tax rate of 40% for companies involved in the importation or distribution of hydrocarbons. This move is expected to help increase government revenue and promote the development of the country's energy sector. The plan also proposes clarifying the tax treatment of investment subsidies and revising the rules for tax exemptions on certain types of income.
The proposed budget plan also includes several measures aimed at reforming the personal income tax system. These measures include increasing the tax-free allowance from 40,000 dirhams to 60,000 dirhams, reducing the number of tax brackets from five to three, and applying progressive tax rates of 10%, 20%, and 30%. The plan also proposes reducing the marginal tax rate on high-income earners from 37% to 30%.
In addition to these measures, the proposed budget plan also includes several changes to the value-added tax (VAT) system. These changes include exempting the importation of live animals and their meat from VAT, as well as introducing a new mechanism for refunding VAT to taxpayers. The plan also proposes exempting the sale of sand from VAT and introducing a new optional regime for real estate developers.
The proposed budget plan also includes several measures aimed at simplifying the tax system and reducing compliance costs for taxpayers. These measures include introducing a new electronic filing system for tax returns and allowing taxpayers to pay their taxes online. The plan also proposes clarifying the rules for tax exemptions and reducing the number of tax forms that need to be completed.
Another key aspect of the proposed budget plan is the introduction of a new fiscal regime for the 2030 FIFA World Cup, which Morocco will host. The plan proposes exempting the FIFA and its partners from certain taxes, including income tax and value-added tax. The plan also proposes introducing temporary tax incentives for companies involved in the organization of the tournament.
The proposed budget plan also includes several other measures aimed at promoting economic growth and investment. These measures include introducing a new tax on luxury vehicles and increasing the tax on contracts of insurance. The plan also proposes harmonizing the sanctions applicable to tax offenses and improving the procedures for recovering tax debts.
Key points
- Morocco's proposed 2027 budget plan includes significant tax reforms aimed at improving the business environment and promoting economic growth.
- The plan proposes introducing a new tax rate of 40% for companies involved in the importation or distribution of hydrocarbons.
- The plan also proposes exempting the FIFA and its partners from certain taxes for the 2030 FIFA World Cup.
