On 18 March 2021, Morocco has published Ministerial Decree 423.21 in the Official Gazette regarding the reduction of maximum interest rate for loans granted by direct shareholders from 2.23% to 1.63% for FY 2021. Interest expense on loans will disallow if the rate exceeds 1.63% for FY 2021. Generally, the tax authority of Morocco do not allow the deduction of interest expense for loans from shareholders if the capital of a company has not been fully paid up and interest expense exceeding the subscribed capital, i.e. debt-to-equity ratio of 1:1.