The Minister of Economy, Finance and Administration Reform, guest of the CGEM with regard to the PLF 2020 : 04/11/2019

The Minister of Economy, Finance and Administration Reform, guest of the CGEM with regard to the PLF 2020

Mr. Mohamed BENCHAABOUN, Minister of Economy, Finance and Administration Reform was, Monday, November 4th 2019 in Casablanca, the guest of the CGEM (General Confederation of Moroccan Companies) joined by the Minister of the Interior, Mr. Abdelouafi LAFTIT, and this during the meeting held under the theme: " Finance Bill 2020: to build trust and boost investment". This event was an opportunity for the presidents of the federations and committee members of the CGEM to present their grievances as part of the discussions around the PLF 2020.

In his speech, the Minister stated that the PLF 2020 includes seven initiatives which objective is to build trust between taxpayers and the administration and boost investment. Thus, it was stressed that these steps (four financial and three qualitative), based on the recommendations of the Tax Meetings, will reinforce the relationship of trust between the administration and the taxpayer and start on new bases within the framework of a tax compliance.

The aim is a voluntary regularization of the fiscal situation of businesses, the extension of the scope of requests for prior tax consultation as well as the requirement to hold a contradictory oral debate following tax checking operations of a company before giving notice of the adjustment. As for individuals, they will be given the opportunity to comply for their own holdings, making 2020 a year of transition to, on the one hand, tax compliance and compliance with the exchange regulations, on the other. Thus, it was stressed that by the end of the year, a set of regulatory actions will emerge.

They will improve and facilitate the exchange operations much more fluid. The aim is to gradually move towards a balance of power between the administration and taxpayers and towards a voluntary manifestation of taxpayers to comply with tax regulations. In addition, the tax actions in the PLF 2020, including the progressive reduction of the marginal rate of the Corporate Tax (from 31 to 28%) as well as the gradual reduction of the minimum contribution rate (from 0.75% to 0.50%) were also presented. It was also clarified that industrial companies will move, over a period of 5 years, to a tax rate of 20% regardless of the destination of the commodity (local or export).

With regard to the free zones, known as industrial acceleration zones, it has been indicated that the current tax regime continues to apply to industries already established in these zones, while the future companies that will be established there in 2020 will benefit from the exemption for five years in terms of corporate tax.

Moreover, the Minister recalled the High Guidelines in the speech of His Majesty King Mohammed VI to the members of both Houses of Parliament during the opening of the first session of the 4th legislative year of the 10th legislature, calling on the bank sector to encourage young project leaders. In this regard, he indicated the meetings held with the presidents of the banks at the end of which it was decided to establish a new specific support fund, amounting to 6 billion dirhams (MMDH) over a period three years, at the rate of 2 MMDH per year.