by Lorys Charalambous, Tax-News.com, Cyprus
Morocco’s General Director of Taxation Abdellatif Zaghnoun has underlined the success of the tax controls carried out in Morocco over the course of last year, which enabled the Government to collect MAD9bn (USD1.1bn) more in fiscal revenues for the state in 2013.
According to Zaghnoun, this improvement in revenue collection is to be seen within the context of increased efforts by the Tax Administration to effectively combat tax evasion in Morocco. The Tax Administration has encouraged businesses to regularize their tax situations with the tax authorities, notably by allowing companies to benefit from a tax “amnesty,” Zaghnoun pointed out.
Furthermore, Zaghnoun underscored the effectiveness of the Tax Administration’s decision to reduce the rate of corporation tax (IS) imposed on very small and medium-sized enterprises in Morocco from 30 to 10 percent. As a result of this measure, some 20,000 companies have begun to declare their profits for the very first time, Zaghnoun revealed.
Alluding to the Government’s recent decision to waive fines and late payment penalties for outstanding taxes, and to grant a tax amnesty to Moroccan citizens with undeclared real estate or financial assets held abroad, Zaghnoun observed that this initiative will serve to generate additional revenue for the state estimated at between MAD5bn and MAD6bn.