Highlights

The Minister thus stated that the outcomes of these meetings aim at boosting investment that generate job and wealth, easing the tax burden, fiscal neutrality and its compliance with international standards.

In this regard, he noted that these outcomes also address the reform of tax incentives, the strengthening of guarantees and rights of taxpayers, the reform of the local tax system and the upgrading of good governance. The need to overcome the difficult situation of SMEs, to respond to the increasing needs and social claims, to fight against tax fraud and tax evasion and to re-establish confidence between taxpayers and the tax administration, was also stressed in the presentation made by the members of the Government.

In addition, the Minister referred to the main findings of the current tax situation, including the need to rationalize incentives and address income equity issues since self-employed professionals pay only 5% of the total tax due compared to 95% for employees and civil servants.

The Minister also stressed the complexity of the Moroccan tax system which is characterized by the inadequacy of the limited capacity of small professionals as well as the non-neutrality of VAT and corporation tax. He noted that 1.6 % of taxpayers are responsible for 80% of VAT sources.

In his presentation, the Minister pointed out that 33% of companies report profits and 73% of them pay the minimum. He considered it necessary to adopt international standards and practices in terms of governance and transparency.

The third national conference on taxation was organized on the initiative of the Ministry of Economy and Finance under the theme "tax fairness". It took place in a particular context characterized, at the national level, by the initiation of an in-depth discussion on the future of the model of national development, following the High Guidelines of His Majesty the King Mohammed VI and the enhancement of tax compliance regulations on the international level.

Therefore, the Minister of Economy and Finance announced the development of a framework law on taxation which will focus on the main principles of the future tax reform and the programming, over 5 years from 2020, of Morocco's main commitments in this area. In this event, 167 written contributions and the outcomes of 14 thematic working groups were presented. A total of 78 recommendations, which are intended as a platform for the planned tax reform, resulted from these meetings.