General Tax Administration (Morocco)

The General Tax Administration manages mainly four state taxes (Corporate tax, income tax, value added tax, registration and stamp duties). It is also responsible for managing three local taxes on behalf of local authorities (business tax, tax on dwellings and tax on communal services). CORPORATE TAX The corporate tax applies to income and profits of :

• Companies irrespective of their form and their purpose (excluding de facto companies comprising only individuals and fiscally transparent real estate companies and Economic Interest Groups);
• Public institutions and other legal entities carrying out profit-making activities;
• Associations and legally recognized organizations; Fund created by law or by agreement;
• Coordination centers of non-resident companies.

INCOME TAX The income tax applies to income and profits of individuals and legal entities which have not opted to be subject to corporate tax. The categories of income concerned by this tax are:

• business income ;
• agricultural income ;
• wages, salaries and similar income ;
• income and profit from rent ;
• income and profit from movable capital.

VALUE ADDED TAX The value added tax, which is a tax on turnover, applies to industrial, commercial or artisanal operations, or to the performance of professional services, in Morocco, and to imports. REGISTRATION AND STAMP DUTIES Registration is a formality to which are subject deeds and other agreements. It gives rise to the levy of a tax called ""registration fee"". Registration is meant to give a definite date to private deeds and ensure recordkeeping. Stamp duties apply to acts, documents, books or registers irrespective of their form, which are established for the title or justification of a right, of an obligation or a discharge and, in general, to record a legal fact or legal relationship.