Tuesday, November 5, 2024
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Morocco: Change in Sight for Income Tax

In Parliament, Fouzi Lekjaa, Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, announced that the government of Aziz Akhannouch plans to initiate a review of the income tax (IR) in the next finance bill (PLF).

The income tax review is becoming clearer. Fouzi Lekjaa, during a session of oral questions in the House of Councilors, underlined that the government “is committed to the various social partners to revise the IR scale in the next PLF, to “relieve the pressure on employees subject to withholding tax”. He will recall that after the tax reform of the 1980s in Morocco, a debate on tax management was opened and was the subject of national discussions. This is how a set of conclusions was developed in 2019, translated into the framework law in 2021, and whose implementation began in 2022.

The tax reform aims, in particular, to broaden the tax base and reduce the tax pressure, said the minister, insisting on the need to “fight against tax fraud and evasion in all their forms”. This fight has borne fruit from the years 2022 and 2023 in terms of value-added tax (VAT).

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The current year will see the continued implementation of the reform relating to VAT and withholding tax from July, per LF-2024, Lekjaa also announced, noting that the measures linked to corporate tax (IS), IR, and VAT have increased the rate of base broadening without resorting to greater tax pressure.

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