Moroccans, this is what we can expect in 2024!

Changes to VAT are intended to amend the applicable exemptions and rates. According to the 2024 Budget Law, some essential products such as school supplies, butter of animal origin, canned sardines, milk powder, and household soap can be exempt from VAT. Moreover, the exemption from VAT extends to services provided remotely by companies not based in the Kingdom to customers in Morocco. In addition, a gradual harmonization of VAT rates is planned for 2026, which will affect various sectors such as water, electricity and transportation.

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With regard to corporate tax, amendments are scheduled to regulate the application of the 35% rate in 2024. Companies whose net tax revenue is less than 100 billion dirhams for three consecutive fiscal years, and whose profits exceed this amount due to irregular income, are not affected by this measure. In addition, the legislation provides for a permanent exemption from corporate tax for the Mohammed VI Foundation for Science and Health.

Regarding income tax, the 2024 Budget Law makes major amendments, including the deduction of social contributions in compulsory health insurance and pensions for professionals, self-employed and non-employees subject to income tax under the real or simplified net income system. The fixed exemption percentage for artists’ total wages will also change from 40% to 50%.

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Regarding registration rights, the 2024 Budget Law introduces fundamental reforms, especially with regard to the allocation of buildings or land by cooperatives and housing associations to their members. The harmonization of registration fees is an important advance and applies the currently applicable proportional fees of 4% for buildings and 5% for land.