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Two bills decree presented by the Minister of Economy and Finance and adopted by the Council of Government : 24/04/2014

Two bills decree presented by the Minister of Economy and Finance and adopted by the Council of Government

​The Council of Government, assembled, Thursday, April 24th 2014, under the presidency of the Head of the Government, examined and adopted two bills decree which were presented by the Minister of Economy and Finance, Mr. Mohammed Boussaid: the first one concerns advances regarding public procurements; the second relates to the refund of the cumulative credit of the Tax on the Added Value.

Therefore, the decree concerning the advances regarding the public procurements lies within the scope of the application of the provisions of the third paragraph of the article 41 of the Royal decree n°330.66 of April 21st, 1967 laying down general rules of public accounting, which stipulates that advances can be granted to suppliers, entrepreneurs and service providers who hold public procurements. These advances on the public procurements aim, among others objectives at:
•    Consolidating  the mechanisms of pre-financing the public procurements;
•    Reducing the financial taxes of companies, holders of public procurements particularly, the small and medium-sized companies;
•    Reducing in upstream the payment periods of the public procurements.
•    And contributing to the improvement of the business climate.
Such a plan will additionally allow for a substantial improvement of the relations between the public buyers and the economic operators intervening in the field of public procurements.
Concerning the specific decree in the refund of the cumulative credit of the Tax on the Added Value, on December 31st, 2013, it stipulates that it is eligible in refunding. It is about the credit of tax resulting from the difference between the rate of the tax on the added value applied to the turnover and that which burdens the costs of production and/or the acquisition in taxes settled in real estate investments.
The decree also stipulates that the accumulative credit of tax eligible in refunding, in conformity with the year 2014, concerns the companies whose amount of the aforementioned tax credit is lower or equal to twenty million (20.000.000) dirhams. This includes almost all the small and medium-sized companies.