Finance Act 2015

Provisions of the Finance Act 2015

 (Published in the Bulletin Official 6230bis dated 25/12/2014)

  • Grants made to non-profit associations

The 2015 Finance Act confirmed the deductibility of donations to charitable and artistic associations.

  • Extension of 10% tax rate to Casablanca Finance City (CFC)

Non-CFC resident corporate representative offices benefit from the Corporation tax rate at the reduced rate of 10% (A19-II-B)

  • Property Companies

Companies that are predominantly in the property business and unlisted on the stock exchange are required to attach to their tax return the list of names of all holders of shares or other securities.

 

  • Advance on futures considered a Redemption

Are considered as a Redemption advances received by the insured person preterm and / or before the age of 55 and are taxable under section 28-Iii

  • Sole traders are not obliged to keep a register of transactions.

Article 42b was repealed by the Finance Act 2015.

  • The duration of training courses is limited to 24 months (ALD 36)

Article 16 of section 57 has revised down to the limit of the duration of the exemption to a 24 month training period instead of 36 months, renewable for a period of 12 months in the case of permanent recruitment. But the employer must now commit to proceed with the recruitment of at least 60% of trainees.

  • Exemption from the IR if salary <= 10.000 DH 24 months for new creation

Article 57 was modified for gross monthly salaries capped at ten thousand (10,000) dirhams for a period of 24 months from the date of employee recruitment, “paid by a company created in the period from 1 January 2015 to 31 December 2019 within the limit of 5 employees.  This exemption is granted to employees recruited on indefinite term contract (CDI) in the first 2 years of the company’s creation

  • Change in the allowable deduction on  gross pensions received

For the determination of net taxable pension income the allowance (that was increased in 2014) was prolonged again for the year 2015 as follows:

-55% On the gross annual amount equal to or lower than 168 000 DH

-40% For the remainder of the pension above 168,000 DH

 

9)  Purchase price to consider in the case sale of property

Article 65-II-has been amended as follows: In the case of a disposal of buildings acquired by donation exempt under the provisions of section 63-III, the purchase price is to be considered is:

Either the purchase price of the last transfer including subsequent expenditure on equipment etc.

Or the market value of the building

  • List of trainees

According to Article 79-V, the employer must produce  a statement containing the list of trainees eligible for exemption under Article 57-20 ° in a prepared printed document emitted by the tax administration. That declaration must

– All the information described in para.I of the Law

– A copy of each CDI employment contract.

11) Extension of VAT exemption to 36 months for capital investments

The legislator has extended the duration of the exemption from VAT from 24 months to 36 months  for all capital acquisitions included in class 2 of the Moroccan chart of accounts. Of course, you must make the request to the tax authorities, as before by depositing the proforma invoices with the appropriate application forms provided by the tax authorities.

  • Changes in some VAT rates as of 01/01/2015

 

  • VAT is 10% now reduced from 14% for solar water heaters A99-2
  • Fishing nets reduced from 20% to 10%;
  • Sales transactions involving works of art down from 20% to 10%
  • VAT on Tea increased from 14% to 20% but with lower import tariffs in compensation;
  • VAT on motorway tolls highway from 10% to 20%

 

  • Reduction from 200 to 100 million dirhams for exoneration from VAT on capital equipment acquired

The Article 123-22 reduced the VAT exemption threshold for machinery and other capital equipment to 100 million dirhams where there is a signed agreement with the Moroccan State.

  • Declaration of VAT by internet

 

According to Article 155-I, taxpayers subject to VAT can submit to the tax authorities by internet the declarations referred to in the tax law (CGI) and under the conditions laid down by order of the Minister of Finance.

However, the above statements MUST be submitted by internet to the tax administration;

  1. a) From 1 January 2010 companies with net sales greater than or equal to 100 million DH
  2. b) As of January 1, 2011 by companies whose net sales is equal to or greater than 50 million
  3. c) As of January 1, 2016 by companies whose net sales is equal to or greater than 10 million DH
  4. d) As of January 1, 2017 by companies whose net sales are equal to or greater than 3 million DH

15) Liberal Professions

Taxpayers in liberal professions who are officially listed MUST also submit to the tax authorities by internet the VAT declarations. The conditions of application of paragraph above are set by the tax regulations.

16) Sole traders can submit VAT returns by internet

According to Article 155-II, taxpayers carrying on business as sole traders (A42bis) MAY submit to the tax authorities by internet the VAT declaration required by the tax regulations(CGI).

These declarations are the equivalent of declarations made in writing

  • Calendar for making VAT payments by internet

According to Article 169, taxpayers may submit to the tax administration  the VAT payments referred to in CGI and under the conditions laid down by order of the Minister of Finance.

However, the above statements MUST be subscribed by electronic means from the tax administration:

  1. a) From 1 January 2010 companies with net sales is equal to100 million DH.
  2. b) As of January 1, 2011 by companies whose net sales is equal to or greater than 50 million DH
  3. c) As of January 1, 2016 by companies whose net sales is equal to or greater than 10 million DH
  4. d) As of 1 January 2017 by companies with net sales is equal to or greater than 3 million DH

The liberal professions   MUST also pay their VAT to the tax authorities by electronic means the amount of taxes and payments provided for in CGI. The conditions of application of paragraph above are set by the tax regulations. Of course, these statements produce the same effects as the declarations made in writing.

Stobbart & Associés

Chartered Accountants

jstobbart2005@gmail.com