Moroccan universities and sports associations recognized as serving the public interest are fully exempt from corporate tax on all their activities and related revenues, Minister Delegate for the Budget, Fouzi Lekjaa, said Wednesday.
In a written response to parliamentarians from the National Rally of Independents party, Lekjaa emphasized that current tax legislation also allows deductions for cash or in-kind donations made to these associations, provided they pursue sporting objectives and operate under legally established sports federations.
The measures are part of a broader effort to support the professionalization of Morocco’s sports sector. The tax code guarantees neutrality for contributions of association assets or liabilities to newly established sports companies under Law 30.09 on Physical Education and Sports. Such contributions, recorded at their last audited value, do not affect the association’s tax liability.
Sports companies benefit from a five-year corporate tax exemption starting from the first year of operations. Afterward, medium and small companies will be taxed at a unified rate of 20% and larger firms at 35%, under gradual reforms introduced in the 2023 Finance Law in line with the broader Tax Reform Framework Law 69.19.
The reforms also include reduced withholding taxes on distributed profits and a gradual introduction of minimum corporate tax rates. Additionally, professional athletes, coaches, and technical staff enjoy a 50% deduction on taxable income from salaries, contingent on holding a professional sports contract certified by the relevant sports federation. Transitional provisions provided higher deductions — up to 90% for 2021–2023 — to facilitate sector growth.
Other measures exempt sports companies from value-added tax on imported equipment donated to recognized universities or federations and waive registration and stamp duties on asset contributions made when converting associations into sports companies.
Lekjaa said these fiscal incentives aim to encourage investment, facilitate the professionalization of the sector, and create a sustainable framework for the development of sports in Morocco.
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