On 18 December 2020, Morocco’s Ministry of Finance has published the Finance Law for 2021 in the Official Gazette. The measures of the Finance Law generally apply from 1 January 2021. Key measures are summarized as follows:
- Social solidarity contribution requirements are introduced for the year 2021.
| Thresholds | Rate |
| Net profits of MAD 1 million to 5 million | 1.5% |
| Net profits over MAD 5 million to 40 million | 2.5% |
| Net profits over MAD 40 million | 3.5% |
| For individuals with annual income more than MAD 240,000 | 1.5% |
- The Casablanca Finance City (CFC) regime is amended such that financial companies are excluded from CFC benefits and the grandfathering of the CFC regime as it applied prior to 1 January 2020 for service companies granted CFC status prior to that date is limited to 31 December 2022.
- A corporate tax exemption is provided for the sale of shares in public establishments and enterprises and their subsidiaries when transferred to the private sector.
- New rules on the electronic submission of the Master file and Local file transfer pricing documentation are provided, including that the documentation must be submitted during an audit (or within 30 days of request) by companies carrying out transactions with related companies outside Morocco, where: the company’s turnover is greater than or equal to MAD 50 million; or the company’s total gross assets in the balance sheet at the end of the financial year concerned is greater than or equal to MAD 50 million.
- New penalty relief provisions are introduced; related penalties, fines, surcharges, and collection costs will be canceled as long as the principal amount of the taxes and duties are paid by 1 July 2021.
- Taxpayers that are liable only for penalties, fines, surcharges, and collection costs that remain unpaid as of 31 December 2020, a 50% reduction is provided if paid by 1 July 2021.
