Highlights

The government Council adopts 4 draft decrees on the delegation of authority to the Ministry of Economy and Finance and the application of VAT : 08/06/2017

The government Council adopts 4 draft decrees on the delegation of authority to the Ministry of Economy and Finance and the application of VAT

Four draft decrees related to the delegation of powers to the Ministry of Economy and Finance were adopted at the council of government, held June 8th 2017 in Rabat under the chairmanship of the head of the government.

These decrees involve domestic loans and foreign financings, the signing of loan agreements for the repayment of costly foreign loans and the agreements related to hedging currency and interest rate risks, as well as the application of Value Added Tax, projected by the Moroccan General Tax Code.

Submitted by the Minister of Economy and Finance, Mr. Mohammed BOUSSAID, the first draft decree N° 2-16-808 on the delegation of authority to the Ministry of Economy and Finance with respect to domestic loans, is part of the implementation of the provisions of the Finance Act N° 73-16 for the Finance year 2017, on renewing the legislative approval for issuing domestic loans.

The second text N° 2-16-809, which is also part of the implementation of the provisions of the Finance Act N°73-16 for the budget year 2017, on the renewal of the legislative approval for the issuance of foreign loans, aims to delegate authority to the Ministry of Economy and Finance in terms of foreign financing.

The third draft decree N° 2-16-810, on the other hand, focuses on the delegation of authority to the Ministry of Economy and Finance with a view to signing agreements for the repayment of costly foreign loans and the agreements related to hedging currency and interest rate risks, and this under the provisions of the Finance Act N°73-16 for the budget year 2017, related to renewing the legislative approval in this area.

On its side, the fourth draft decree N° 2-16-811 is intended to adjust and enhance the decree N° 2-06-574, issued December 31st 2006 on the application of VAT, as set forth in the third section of the Moroccan General Tax Code. This text comes within the framework of updating an organic text on the VAT application, in the light of the new points in the Finance Act 2017.