TAX NEWS
by Lorys Charalambous, Tax-News.com, Cyprus
The Moroccan finance ministry has recently published the 2013 “citizen’s budget,” designed to improve communication with citizens and to strengthen citizens’ right of access to budget information, as prescribed by the new constitution.
The initiative follows up on action taken last year by the finance ministry in terms of publishing the 2012 budget following adoption of the bill by both chambers of parliament. Publication of the 2013 citizens’ budget on the finance ministry’s website is intended to highlight government policies in the areas of education, health, housing and social cohesion as well as in improving conditions for populations in rural areas. It also allows taxpayers to submit their own opinions on the budget.
Morocco’s Chamber of Representatives adopted during a recent plenary session the government’s 2013 finance bill, containing a raft of fiscal measures designed to reduce the budget deficit and to contain expenditure next year.
The most notable measure in the text adopted by the Chamber of Representatives is an “exceptional contribution,” to be imposed for a period of three years 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% or 1% for net profits of between MAD20m 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 calculated at proportional rates of 3% for income net of tax between MAD300,000 and MAD600,000 and 5% for income net of tax above MAD600,000.
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.
Due to be submitted to the Chamber of Advisors shortly, 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.
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