by Lorys Charalambous, Tax-News.com, Cyprus
The Moroccan Chamber of Representatives has recently adopted during a second reading the government’s 2013 finance bill, designed to reduce the budget deficit and to contain expenditure next year. The text was approved by 117 votes to 48.
According to the Moroccan Budget Minister Driss El Azami El Idrissi, the adopted text will serve to accelerate the pace of investment, to boost economic growth, and to encourage small- and medium-sized companies in Morocco.
Morocco’s 2013 finance bill provides for a temporary exceptional contribution (une contribution sociale de solidarité) to be imposed on top income earners and on companies realizing large profits, to benefit the poor.
For companies, this contribution will apply for three consecutive years from January 1, 2013, and will be calculated on net profit realized at the following proportional rates: 0.5% on net profits of between MAD20m and MAD50m, 1% on net profits MAD50m and MAD100m, and 1.5% on net profits in excess of MAD100m.
For individuals, this contribution will apply to income acquired or realized between January 1, 2013 and December 31, 2015, and will be applied at a rate of 3% on income net of tax between MAD300,000 and MAD600,000 and 5% for income net of tax above MAD600,000.
Revenues from the solidarity taxes are to flow to a support fund for social cohesion (Fonds d’Appui à la Cohésion Sociale).
The 2013 finance bill also extends until December 31, 2020, tax exemptions accorded for low-value housing construction programs aimed at the country’s poorest. The tax benefits include exemption from registration fees, from stamp duty, and exemption from land conservation fees.
The 2013 finance bill provides for an economic growth rate of 4.5% and for a reduction of the budget deficit to 4.8% of gross domestic product.
