Taxation

Fees and taxes on profit payable on an estate sale

The gain or 20%. Are exempt owners that use the property as a main residence for at least 6 years with a minimum contribution of 3% of the sale price.

Draft law of finances 2019

Draft Budget Law 2019: Outline
-IS 10% maintained up to 300,000 dh of profit
-IS 20% lowered to 17.50 from 300,0001 to 1 million dh
-IS 31% raised to 32% for profit of +1 million dh
-The minimum contribution raised to 0.75% in the middle of the 0.5% rate
– The social solidarity contribution of 2% over 50 million net benefits over 2 years
The vignette increases from 50 to 500 DH
– Abolition of the ceiling of 10,000 DH for cash settlements

The outline of the draft budget law adopted first in the council of government then and, especially, in council of ministers chaired by HM King Mohammed VI Wednesday, October 10, 2018 are the following:

1) Modification of the corporate income tax schedule (IS) Tax benefit of less than or equal to 300,000 DH: 10% (unchanged)

Tax benefit of +300,000 to 1 million DH: 17.50% instead of 20%

Tax benefit greater than 1 million DH: 32% instead of 20% and 31%

The rate of 37% for credit institutions and similar organizations, Bank Al Maghrib, CDG, insurance companies and reinsurance would be

maintained.

2) Increase of the minimum contribution from 0.50% to 0.75%

 The rate of 0.25% for sales of petroleum products, gas, butter, oil, sugar, flour, water and electricity would be unchanged.

 The same applies to the 6% rate for certain liberal professions that would be maintained.

3) New social contribution of solidarity: 2%

A rate of 2% will be instituted in 2019 for the companies which realize a net profit equal or superior to 50 million DH on 2 consecutive exercises

4) New minimum contribution on land profit

If the transfer price exceeds 500,000 dirhams, the transfer profit for residential buildings even occupied for 6 years and more is subject to a minimum contribution of 3% of the transfer price.

5) The 40% allowance replaced by a deductible of 30,000 DH

The 40% reduction on the amount of land revenue in effect for more than 25 to 30 years would be replaced by a deductible of 30,000 DH like wages. These revenues would be taxed at the specific rate of 15%

6) The cap of 10,000 DH cash will be removed

The cash payment capped at 10,000 DH for the charge to be deductible and the recoverable VA would be eliminated as of 2019. It is necessary to wait for the final text of the law and, especially, the explanations of the circular around 20 January 2019

n will not remove counter cash sales or cash in pharmacy?

7) Increase of the « Vignette » from 50 to 500 DH

The annual special tax on vehicles will increase from 50 to 500 DH depending on the cylinder capacity of the vehicle.

 Gasoline vehicle: -8 hp: 400 dh; from 8 to 10 HP: 700 dh; from 11 to 14 hp; 3,200 dh; equal to or greater than 15 cv: 8,500 dh

 Gas oil vehicle: 8 hp: 750 dh; from 8 to 10 HP: 1,550 dh; from 11 to 14 hp; 6,200 dh; equal to or greater than 15 hp: 20,500 dh

8) Self-construction subject to VAT

Self-delivery operations for personal housing construction carried out by natural persons, real estate companies and cooperatives are subject to VAT in 2019 if the total covered area exceeds 300 m2.

9) Amnesty on certain debts owed

There is also talk of the cancellation of certain old claims before January 2000. The same is true of fines and penalties. We have to wait for the law and the circular.