Morocco offers attractive incentives for investors. It includes financial, tax, and customs benefits that can be obtained through agreements or investment contracts with the state, subject to meeting the required criteria.
Here's a summary of the incentives :
Investment Promotion Fund (IFP): The IFP manages the state's contribution to certain investment expenses. This includes:a. Land support: The IFP covers 20% of the expenses for land acquisition required for the investment. b. External infrastructure: The IFP participates in the expenses of external infrastructure, up to 5% of the overall investment program. c. Training: The IFP contributes to the cost of vocational training related to the investment program, up to 20% of the training cost.
Hassan II Fund for Economic and Social Development: The state contributes to expenses promoting investment in specific industrial sectors and the development of modern technologies through this fund.
Exemption from import VAT: Under Section 123-22°-b of the General Tax Code, certain investment projects can benefit from an exemption from import VAT on goods, materials, and tools directly imported by the companies or on their behalf.
VAT Exemption for Investment Projects: Investment projects with a value equal to or greater than MAD 200 million can be exempt from VAT on imports of equipment goods, materials, and tools. This exemption is granted for a period of 36 months from the start of the business, as part of an agreement concluded with the state.
There are specific tax exemptions and benefits for companies operating in various sectors, including hotels, industrial companies, sports companies, capital risk companies, entities in Casablanca Finance City, and those established in free trade zones (FTZs):
Hotel companies operating in the tourism sector can benefit from a temporary exemption on their profits related to export turnover for a period of five years from the first export operation.
Industrial companies engaged in specific activities, as defined by regulations, and companies carrying out outsourcing activities inside or outside industrial zones, can enjoy a total exemption from Corporate Income Tax (CIT) for the first five consecutive fiscal years from the start of their operations.
Sports companies established in accordance with the law on physical education and sports can be completely exempt from CIT for a period of five consecutive financial years, starting from their first fiscal year of operation.
Capital risk companies are exempt from CIT on profits derived from activities related to the purchase and subsequent sale of shares of companies supporting their development.
Companies established in Casablanca Finance City, a dedicated finance area, can benefit from tax incentives. They are exempt from CIT on their export turnover for the first five years following the acquisition of the Casablanca Finance City statute. Subsequently, a reduced CIT rate of 8.75% applies to the export turnover.
Companies operating in FTZs, engaged in specific activities such as food processing, textiles, metallurgy, mechanics, electronics, chemicals, and related services, can enjoy a total exemption from CIT on their export turnover for the first five years from the start of their operations.
Listed shares: Non-resident entities are exempt from capital gains tax on the sale of stocks listed on the Casablanca stock exchange, excluding shares of real estate entities.
Foreign tax credit: Morocco allows for the credit of income tax paid on income earned outside the country against the CIT payable in Morocco, if provided for by a tax treaty.
Aizen Consulting will be delighted to guide you in your investment projects in Morocco.