INVESTMENT CHARTER
LexInter | July 9, 2017 | 0 Comments

INVESTMENT CHARTER

PRAISE TO GOD ALONE !

( Great Seal of His Majesty Hassan II )

Let it be known hereby – may God uplift and strengthen the tenor !

May Our Cherifian Majesty ,

Considering the Constitution, in particular its article 26 ,

Has decided the following :

Is promulgated and will be published in the Official Bulletin, following this dahir, the framework law

n ° 18-95 forming the investment charter, adopted by the House of Representatives on 7 joumada I 1416 (3 October 1995 ).

Done in Rabat, on 14 joumada II 1416 (8 November 1995 )

For countersignature :

The Prime Minister ,

Abdellatif Filali .

Framework law n ° 18-95 forming the investment charter

Title one: Objectives of the investment charter

First article

Are fixed, in accordance with the provisions of the second paragraph of article 45 of the Constitution, the fundamental objectives of the action of the State for the ten years to come with a view to the development and the promotion of the investments by the improvement of the investment climate and conditions, revising the scope of tax incentives and taking measures to encourage investment .

Article 2

The measures provided for by this charter tend to encourage investment by :

– reduction of the tax burden relating to the acquisition of materials, tools, capital goods and land necessary for the realization of the investment ;

– reduction of tax rates on income and profits ;

– granting of a preferential tax regime in favor of regional development ;

– strengthening of the guarantees granted to investors by adjusting the means of appeal in matters of national and local taxation ;

– promotion of offshore financial centers, export processing zones and the free industrial warehouse regime ;

– better distribution of the tax burden and proper application of the rules of free competition, in particular by reviewing the scope of the tax exemptions granted .

These measures also tend to :

– encourage exports ;

– promote employment ;

– reduce the cost of investment ;

– reduce the cost of production ;

– rationalize the consumption of energy and water ;

– protect the environment .

Title II: Tax measures

Customs duties

Article 3

Customs duties comprising the import duty and the import tax levy are arranged as follows :

– The import duty cannot be less than 2.5% ad valorem ;

– Capital goods, materials and tools as well as their parts, spare parts and accessories, considered necessary for the promotion and development of the investment are subject to an import duty at a minimum rate of 2.5 % ad valorem or at a maximum rate of 10% ad valorem ;

– The capital goods, materials, tools and parts, spare parts and accessories referred to above are exempt from the import tax levy taking into account the interests of the national economy .

Value added tax

Article 4

Are exempt from value added tax within and on imports, capital goods, materials and tools to be entered in a fixed asset account and opening the right to deduction in accordance with the legislation relating to the tax on added value .

The subject companies which have paid the tax on the occasion of the importation or the local acquisition of the aforementioned goods benefit from the right to a refund of the said tax .

Recording rights

Article 5

Deeds of acquisition of land intended for the realization of an investment project are exempt from registration fees, with the exception of the acts referred to in paragraph a) of the second subparagraph above, subject to the completion of the project within a maximum period of 24 months from the date of the act .

The following are subject to a registration fee at the rate of 2.5% :

a) deeds of acquisition of land intended for the carrying out of subdivision and construction operations ;

b) the first acquisition of the constructions referred to above by natural or legal persons other than credit institutions or insurance companies .

Contributions to a company on the occasion of the construction or increase of the company’s capital are subject to a registration fee at the maximum rate of 0.50% .

Participation in national solidarity

Article 6

The tax on participation in national solidarity linked to corporate tax is abolished .

However, profits and income totally exempt from corporation tax by virtue of present or future legislation instituting measures to encourage investment are liable, instead of participation in national solidarity, to an equal contribution. 25% of the amount of corporation tax that would normally have been payable in the absence of exemption .

Corporation tax

Article 7

A. – The corporate tax rate is reduced to 35% .

B. – Companies exporting products or services benefit, for the amount of their export turnover, from special advantages which may go as far as total exemption from corporation tax for a period of five years and a reduction of 50% of the said tax beyond this period .

However, with regard to companies exporting services, the aforementioned exemptions and reductions only apply to export turnover realized in foreign currencies .

C. – Companies which set up in prefectures or provinces whose level of economic activity requires preferential tax treatment, benefit from a reduction of 50% of corporate tax during the first five years following the date of their operation, excluding the permanent establishments of companies not having their head office in Morocco, attribution of works, supplies or services contracts, credit institutions, insurance companies and real estate agencies ,

D. – The craft enterprises, whose production is the result of an essentially manual work, benefit from a reduction of 50% of the corporation tax during the first five years following the date of their exploitation, and this, regardless of their location .

General income tax

Article 8

A. – The rates of the general income tax scale are adjusted, the maximum tax rate not to exceed 41.5% .

B. – Companies exporting products or services benefit, for the amount of their export turnover, from special advantages which may go as far as total exemption from general income tax for a period of time. period of five years and a reduction of 50% of the said tax beyond this period .

However, with regard to companies exporting services, the aforementioned exemptions and reductions only apply to export turnover realized in foreign currencies .

C. – Companies which set up in prefectures or provinces whose level of economic activity requires preferential tax treatment, benefit from a reduction of 50% of general income tax during the first five years following the date of their operation, excluding the permanent establishments of companies not having their headquarters in Morocco, awarded works, supplies or services contracts, as well as real estate agencies .

D. – The craft enterprises, whose production is the result of an essentially manual work, benefit from a reduction of 50% of the general income tax during the first five years following the date of their exploitation and this, regardless of their location .

E. – The benefit of the advantages provided for above is subject to the keeping of regular accounts in accordance with the legislation in force .

Declining balance depreciation

Article 9

Are maintained for capital goods and during the period referred to in article 1 above, the measures provided for by the legislation on corporation tax and general income tax in terms of depreciation. decreasing .

Provisions for investment in corporate tax matters

and general income tax

Article 10

Are considered as deductible expenses, the provisions constituted within the limit of 20% of the fiscal profit, with tax, by the companies with a view to the realization of an investment in capital goods, materials and tools, and this, within the limit 30% of said investment, excluding land, buildings other than for professional use and passenger vehicles .

Provisions made by mining companies for the reconstitution of mining deposits are maintained as deductible charges in accordance with the legislation relating to corporation tax or general income tax .

The aforementioned provisions used in accordance with the purpose for which they were established are transferred to a provisional account entitled “investment provisions “.

The amounts entered in the “investment provisions” account are only used :

– by incorporation into the capital ;

– or as a deduction from deficits from previous years .

Real estate profit tax

Article 11

In order to encourage the construction of social housing, is exempt from the tax on real estate profits, the profit realized by natural persons on the occasion of the first sale of premises for residential use, provided that the sale no not have a speculative character and that the housing presents in a social character .

Patent tax

Article 12

The variable tax on the principal of the patent tax is abolished .

Any natural or legal person exercising a professional, industrial or commercial activity in Morocco is exempt from patent tax for a period of five years which runs from the date of the start of his activity .

Are excluded from this exemption the permanent establishments of companies and companies not having their head office in Morocco, awarded contracts for works, supplies or services, credit establishments, insurance companies and real estate agencies .

Urban tax

Article 3

New constructions, additions to constructions as well as devices forming an integral part of establishments for the production of goods or services are exempt from the urban tax, for a period of five years following that of their completion or installation .

The establishments, companies and agencies referred to in the last paragraph of Article 12 above are excluded from this exemption, with the exclusion of leasing companies with regard to the equipment they acquire on behalf of their customers. .

Local taxation

Article 14

With regard to local taxation, there is a simplification and harmonization of the maximum rates and tax bases and their adaptation to development and investment needs .

Title III: Financial, land, administrative and other measures

Article 15

The purpose of these various measures is :

– the freedom to transfer profits and capital for people who make investments in foreign currency ;

– the constitution of a land reserve intended for the realization of investment projects and the definition of the participation of the State in the acquisition and the equipment of the grounds necessary for the investment ;

– guidance and assistance to investors in carrying out their projects, through the creation of a unified national body ;

– simplification and streamlining of the administrative procedure relating to investments .

Foreign exchange regulations

Article 16

Natural or legal persons of foreign nationality, resident or not, as well as Moroccan natural persons established abroad, who make investments in Morocco financed in foreign currency, benefit for said investments, in terms of foreign exchange regulations, from ” a convertibility regime guaranteeing them complete freedom to :

– the transfer of profits net of tax without limitation of amount or duration ;

– the transfer of the proceeds from the total or partial sale or liquidation of the investment, including capital gains .

Support by the State of certain expenses

Article 17

Companies whose investment program is very important because of its amount, the number of stable jobs to be created, the region in which it must be carried out, the technology which it will transfer or its contribution to the protection of the environment, may enter into specific contracts with the State granting them, in addition to the advantages provided for in this framework law and in the texts adopted for its application, a partial exemption from the following expenses :

– expenses of acquiring the land necessary for the realization of the investment ;

– expenditure on external infrastructure ;

– vocational training costs .

The contracts referred to above may include clauses stipulating that the settlement of any dispute relating to the investment, which may arise between the Moroccan State and the foreign investor, will be carried out, in accordance with international conventions ratified by Morocco in the matter. international arbitration .

Investment Promotion Fund

Article 18

A special allocation account entitled “Investment promotion fund” is created intended to record the operations relating to the assumption by the State of the cost of the advantages granted to investments under the regime of the investment contracts concerned. to the previous article as well as to the expenses necessitated by the promotion of investments .

Industrial areas

Articles 19

In the provinces or prefectures where the level of economic development justifies special assistance from the State, the latter bears part of the cost of developing the industrial zones to be established there .

Article 20

Each industrial zone, the size of which justifies it, has a management committee made up of the users of the zone and the promoter, public or private, and responsible for overseeing the management and maintenance of the site. ” the whole area, to the surveillance and maintenance of security inside the area as well as to the proper application of the clauses of the specifications binding the promoter of the area and the users .

Welcoming and assisting investors

Article 21

An administrative body responsible for the reception, guidance, information and assistance of investors as well as investment promotion is hereby established .

Simplification of administrative procedures

Article 22

Administrative procedures related to the making of investments are streamlined and simplified. In all cases where it is necessary to maintain an administrative authorization for the granting of advantages provided for by this framework law, this authorization is deemed to be granted when the administration has remained silent on the action to be taken. at the request concerning it for a period of sixty days from the date of filing of the said request .

Transitional provisions

Article 23

The rights acquired by investors with regard to the advantages from which they benefit by virtue of the legislation instituting measures to encourage investment shall be maintained, which advantages remain in force until the expiry of the term, and under the conditions, for which they have been granted .

Title IV: Agricultural sector

Article 24

The provisions of this framework law are not applicable to the agricultural sector, the tax regime of which, in particular that relating to investments, will be the subject of special legislation .

Title V: Application measures

Article 25

This framework law will come into force in accordance with the legislative and regulatory texts adopted for its application .

The government proceeds to the presentation of the legislative and regulatory texts necessary for the achievement of the objectives defined in this framework law from the budget law for the year 1996.

The text in Arabic was published in the general edition of the “Official Bulletin” n ° 4335 of 6 rejeb 1416 (November 29, 1995

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Title V: Application measures

Article 25

This framework law will come into force in accordance with the legislative and regulatory texts adopted for its application .

The government proceeds to the presentation of the legislative and regulatory texts necessary for the achievement of the objectives defined in this framework law from the budget law for the year 1996

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