Moroccan accountants spar over 'misleading' tax breaks in the Sahara

Moroccan accountants are at odds over claims of alleged tax breaks in the southern provinces. Companies offering setup and tax management services are promoting these regions, promising big savings. But these claims seem to contradict official tax rules. 

The source of the issue is misleading information. Some accountants are accused of luring clients with false promises of tax exemptions.

This not only hurts fair competition but also creates problems for companies down the line. Many who set up shop in the south based on these promises are surprised to find they owe taxes after all.

Tax professionals are calling these offers “misleading”  since tax laws apply equally across Morocco. There’s no special treatment for southern companies, just standard tax obligations.

They argue the confusion stems from mixing up legal tax breaks (which don’t exist) with temporary incentives. 

Companies in the Southern provinces face confusion regarding their tax obligations. While official statements confirm uniform tax treatment across the country, some settlement service providers, including accountants and firms, are promoting tax exemptions for companies established in the Moroccan Sahara. 

This contradicts Law 31.08, which mandates accurate information for consumers about purchased products and services.

The government has also weighed in. The Minister of Economy and Finance says they’re cracking down on companies using fake southern addresses to avoid taxes. These companies still need a tax certificate to bid on government contracts, and getting one will be harder now. 

Mustapha Hajjouj, a tax law consultant, commented on the minister’s response by emphasizing the difference between exemptions and incentives in dealing with companies that choose the southern provinces as their domicile.

The expert clarified that VAT-related tax breaks are now offered under standard regulations. However, to compete for government contracts, companies in these regions must still present certificates proving their declared turnover, income verification, and legal tax standing. Obtaining these certificates now requires a formal request by the company.

Hajjouj emphasized the importance of streamlining the process for companies, especially those in the Moroccan Sahara, to obtain the digital tax certificates needed for public tenders. These certificates verify a company’s tax compliance.

The expert added that companies must now submit their tax filings. If their tax situation is unclear, they won’t be able to complete the process and receive the certificates or other necessary documents. 

For years, the General Directorate of Taxes has offered these companies “amicable settlements” to help them resolve any outstanding tax issues definitively.